LAHORE: As innovation has emerged as the new currency of national power, Pakistan continues to lag behind its regional competitors. The latest Global Innovation Index (GII) places Pakistan at 99th among 139 economies.
This ranking reflects both stubborn structural weakness and a promising, though underutilised, potential. The Index paints a picture of a country that produces more innovation than its economic conditions would suggest, yet is unable to convert this potential into sustainable national strength.
In Asia, China remains the region’s biggest innovator. It has reached this status on the strength of heavy public investment in research, world-class universities and massive technology parks that transformed China from a low-cost manufacturer into a global innovation powerhouse. Its dominance in electric vehicles, renewable energy technologies and digital payments is the result of decades of continuity in policy and investment
India, too, continues to surge ahead, ranking around 40th globally. India’s strength comes from its deep pool of engineers, strong IT ecosystem, global tech integration and a dynamic startup landscape that attracts billions of dollars in annual investment. Whether it is digital public infrastructure, fintech, pharmaceuticals, or space technology, India has systematically built an ecosystem where innovation thrives beyond state institutions — in private enterprise, academia and venture capital.
Bangladesh, once considered comparable to Pakistan, has begun to widen the gap. Though still ranked below 90, it has shown consistent improvement driven by booming ICT exports, light manufacturing innovation, and targeted government support for skills and technology adoption.
In contrast, Pakistan’s innovation story is one of fragmentation. Despite producing excellent pockets of innovation — software developers, mobile-app creators, creative industries and a global freelancing workforce — the country does not perform well on the foundational pillars that drive national innovation. These include education quality, research output, regulatory stability, and the investment climate. The 2025 GII places Pakistan’s innovation inputs at 124th, far below countries with comparable income levels. Weak institutions, inconsistent policies, underfunded universities, and outdated infrastructure collectively choke the nation’s ability to innovate at scale.
Yet Pakistan’s ranking is not all gloom. In fact, the country performs significantly better on innovation outputs, ranking around 75th globally, far ahead of what its inputs predict. This means that Pakistanis often innovate despite inadequate support — a sign of the country’s raw entrepreneurial strength. The booming IT outsourcing sector, growing software exports, vibrant design and creative industries, and improvements in business sophistication show that Pakistani talent is globally competitive. But potential alone cannot compensate for weak foundations.
The contrast with regional peers lies primarily in policy consistency and investment in people. India’s education reforms, China’s massive R&D funding, Vietnam and Malaysia’s aggressive industrial upgrading, and Bangladesh’s digital transformation all demonstrate the importance of long-term planning. These countries did not merely hope for innovation — they invested in it, protected it and integrated it into their national growth strategies.
Pakistan remains trapped in cyclical governance issues. When innovation policy changes with every government, when universities lack meaningful research funding, when tax and regulatory environments shift unpredictably, and when broadband, energy, and logistics remain expensive and unreliable, sustained innovation becomes almost impossible. Our entrepreneurs operate in a climate of uncertainty that inhibits risk-taking and long-term investment — the very ingredients innovation requires.
Still, Pakistan holds certain unique advantages. Its young population, growing digital adoption, and vibrant private-sector talent pool can become powerful drivers of innovation — but only if complemented by structural reforms. Pakistan must shift from viewing innovation through a narrow tech lens to understanding it as a broad national capability that spans agriculture, industry, health, digital governance, and creative sectors.
Today, innovation is no longer a luxury — it is the backbone of national competitiveness. Without it, countries fall behind not only economically but also technologically, militarily, and socially. Pakistan still has time to catch up, but the window is shrinking. Pakistan’s current ranking may not define its destiny — but it certainly warns us of what that destiny will be if we continue to ignore the role of innovation in national strength.
