Pakistan has secured the 91st position out of 133 economies in the Global Innovation Index (GII) 2024, with a score of 22.01 out of 100. This ranking highlights the country’s mixed performance—demonstrating strong innovation outputs while struggling with foundational inputs. After showing improvement in 2023 by climbing to 88th place, Pakistan has slipped slightly, reflecting the broader global slowdown in innovation finance. Despite this, the country remains one of 19 economies that over-perform relative to their development level, a position it has held for three consecutive years.
The GII is structured around seven key pillars that are divided into innovation inputs and outputs. Pakistan performs significantly better in outputs, including business sophistication, creative outputs, and knowledge and technology generation. Ranked 72nd in business sophistication, the country has shown progress in private-sector R&D collaborations and trademark registrations. In knowledge and technology outputs, where it ranks 69th, Pakistan has made strides in patent filings abroad and high-tech imports. Creative outputs also remain a strength, particularly in mobile app development and media exports, securing the country the 70th spot in that pillar.
However, critical gaps continue to hold back overall progress. Pakistan ranks 113th in institutions due to weak governance structures and unpredictable policy environments. In infrastructure, it sits at 120th, mainly due to low broadband penetration and logistics inefficiencies. Human capital and research remain underdeveloped, with R&D spending stuck at 0.3 percent of GDP and tertiary STEM enrollment rates falling short of innovation economy standards.
Regionally, Pakistan stands 5th among 10 Central and Southern Asian economies, ahead of Sri Lanka, Bangladesh, and Nepal, but trailing India, Iran, Kazakhstan, and Uzbekistan. Among lower-middle-income countries globally, Pakistan is ranked 14th, better positioned than Bangladesh and Uganda but behind economies like India, Vietnam, and the Philippines. Peer countries such as Malaysia and Kazakhstan have advanced through targeted policies in R&D tax incentives, digital governance, and ecosystem development.
Despite structural hurdles, Pakistan’s innovation landscape has seen notable achievements. Airlift Technologies raised $15 million in Series A funding in 2024, expanding its footprint in logistics and on-demand transit. Punjab IT Board’s Plan9 incubator has supported over 250 startups since 2012, with health tech platform Sehat Kahani now serving over 250,000 patients. NUST’s Commercialization and Technology Innovation Center has launched over 30 spin-offs, including SolarEdge Pakistan, which develops locally tailored solar inverters. Meanwhile, the State Bank of Pakistan is piloting a digital currency to enhance financial inclusion, with the full rollout expected in 2026.
Major barriers that require attention include low investment in research, regulatory unpredictability, and digital infrastructure constraints. Skills development also lags, with outdated curricula and limited industry exposure for STEM students. Additionally, participation of women in tech entrepreneurship remains under 10 percent, underscoring the need for inclusive innovation strategies.
To address these issues, Pakistan must increase R&D funding, modernize its education system, expand broadband connectivity, and simplify regulatory procedures. Scaling incubators, forging corporate-startup partnerships, and integrating inclusivity into innovation policies will also be vital for sustained progress. While challenges remain, Pakistan has a base of resilience in its innovation outputs. Continued commitment and coordination across sectors can help unlock its full innovation potential.
