
Experts caution against unchecked use of AI
Highlighting $100 billion impact of technology on the global economy during a conference titled 'New Age Innovations: Create Impact in an AI-Driven Future', held at a local hotel, speakers urged responsible use of AI and warned users about inherent data biases.
Former Chairman of the Higher Education Commission of Pakistan, Prof Dr Atta-ur-Rahman said that despite limited resources, the country has made remarkable achievements in science and innovation.
'Universities are not about good buildings, but good minds,' he stated, reminding the Islamic world of its declining presence in science and technology, noting the lack of a Muslim Nobel laureate in the sciences. He urged Muslim nations to abandon superstition and embrace modern scientific developments.
He told participants that AI, when combined with quantum computing, can solve problems in minutes that would otherwise take billions of years. He also highlighted AI's use in education, medical advancements, treatments, and innovations such as neuro and chips to aid the visually impaired.
Sohail Jawaad Syed, Executive Director at DFS Group, State Bank of Pakistan, discussed the country's digital payment landscape. He noted that while global adoption of digital payments is increasing, many Pakistanis still rely on physical transactions such as cheques.
He said that 82 percent of account holders still prefer cash or cheque transactions due to a lack of understanding of digital banking. He urged the government to develop policies that promote digital payment systems to improve transaction efficiency.
Expressing concerns, he advised users to interact with AI cautiously, citing data biases. He emphasised that AI poses significant cybersecurity threats, calling them 'really scary,' and added that it could also infringe on human privacy. He called for proper regulations to manage these risks.
German Consul General in Karachi Dr Rüdiger Lotz praised the organisers for enhancing public understanding of AI. 'We have to ensure we use AI, and not the other way around,' he remarked.
He also described AI-generated information as 'biased' and urged users to verify content critically. He said AI technology still lacks objectivity and should remain a tool—not a decision-maker—for humans.
Dr Ani Atanasova, CEO and Co-founder of Pixelhunters, UAE, speaking online, stressed that AI cannot replace human creativity. She explained that AI generates content from existing data, whereas human creativity is boundless and includes emotion— something AI lacks.
She acknowledged AI's benefits in education, helping students innovate and enabling technologists to train AI with human behaviour patterns. However, she pointed out that trust in AI-generated content remains a challenge.
Yasmin Hyder, CEO of New World Concepts Pakistan observed that the post-COVID era has rapidly transformed marketing, branding, and HR management. She said the conference aimed to explore AI as a powerful innovation tool.
Dr S Akbar Zaidi, Executive Director of the Institute of Business Administration Karachi, provided a critical perspective on how institutions and societies must adapt to the AI revolution. He addressed AI's socioeconomic implications and emphasised the importance of policy, education, and governance in achieving inclusive, sustainable outcomes.
Asma Shaikh, Acting VP and Director General HR at the Asian Infrastructure Investment Bank, China, shared insights on how organisations can prepare their workforce for the AI era. She highlighted the importance of future-ready leadership, agile teams, and inclusive talent development.
Naz Khan, Principal Country Officer at the International Finance Corporation Pakistan, focused on AI's transformative potential in agriculture, energy, and infrastructure. She emphasised how technology can drive inclusive economic growth and tackle challenges like climate change and poverty.
Atyab Tahir, Co-founder and CEO of HugoBank, discussed how AI is revolutionising the banking and financial services sector by enhancing customer experience, operational efficiency, and data-driven decision-making.
Qashif Effendi, EVP of SBE Holdings, Canada, presented on 'Boosting Sales with Generative AI,' showing how AI can optimise marketing and sales through better customer targeting, content creation, and campaign management.
Dr Zainab Samad, Ibn-e-Sina Professor and Chair of the Department of Medicine at Aga Khan University, spoke on 'How AI is Affecting Health and Wellbeing.' She detailed AI's impact on diagnostics and patient care, while also addressing how constant use of new technologies may affect brain function and social behaviour.
Copyright Business Recorder, 2025
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
19 minutes ago
- Express Tribune
What you say to AI might not stay private, warns OpenAI CEO
OpenAI logo is seen near computer motherboard in this illustration taken January 8, 2024. PHOTO: REUTERS OpenAI CEO Sam Altman has warned that users who share personal or emotional content in ChatGPT conversations should proceed carefully. Unlike discussions with licensed professionals, such as therapists, doctors, or lawyers, chats with AI do not receive legal confidentiality or privilege. If a legal case arises, those conversations could be produced in court. Altman's caution comes as many users increasingly rely on ChatGPT for relationship advice, mental health support, or life guidance, especially younger people. He emphasized that these uses feel intimate, but currently lack any legal protections under existing frameworks. He also noted broader privacy concerns. OpenAI is appealing a court ruling tied to The New York Times lawsuit, which requires the retention of user chat histories, even those deleted, except for Enterprise accounts. This policy change may set a precedent affecting the data rights of all users. Altman described the privacy and legal gaps in AI chats as a significant issue, calling for urgent development of new rules and standards to safeguard sensitive interactions with these platforms.


Express Tribune
7 hours ago
- Express Tribune
Time to keep rates unchanged
Pakistan's real long-term growth won't come from slashing rates prematurely; it will come from shifting the engine of growth towards productivity, not consumption. Photo: file Listen to article The State Bank of Pakistan (SBP) is set to announce its monetary policy decision on July 30, and all eyes will be on whether it cuts interest rates again or chooses to hold. In my view — as an analyst tracking macroeconomic and capital market signals closely — no change is warranted at this point. Pakistan has already seen a dramatic reversal in policy rates — from a staggering 22% to a relatively benign 11% as of May 2025. That's not just a rate cut; that's a full-blown pivot. While this brings welcome relief to borrowers and a much-needed growth stimulus, macroeconomics doesn't respond overnight. A monetary easing of this magnitude usually takes two to three quarters to trickle into the real economy. A premature cut now would be like offering dessert before the main course has even been served. Let's not overfeed an economy still digesting the last policy meal. The YoY inflation dip into the low-to-mid 3% range in recent months has largely been driven by the base effect, not necessarily a fundamental deceleration. With energy tariff adjustments, expected global commodity swings, and reduction in remittance incentives, inflation is likely to re-enter the 7-9% band by year-end. SBP's long-term inflation target band of 5-7% is admirable, but it must also guard real interest rates — ideally 3-5% positive — to sustain current account balance, contain imports, and maintain currency stability. History has shown that dipping below this zone leads to overheating, demand-pull inflation, and pressure on external buffers. We can't afford to repeat that cycle again. Don't light the fuse in year three SBP Governor Jameel Ahmad has repeatedly spoken about avoiding the boom-and-bust mistakes of the past — and he's right. The third year of any macro stabilisation programme is the most vulnerable: the temptation to cut too early is strongest, the political cycle begins to heat up, and the reserves appear deceptively comfortable. But here's the catch — Pakistan's FX reserves, while improved, are still largely propped up by bilateral rollovers, multilateral support, and deferred repayments. This is not the time to fire the bazooka. Instead, it's time to keep a measured hand on the lever, especially as tariff rationalisation under the new National Tariff Policy (NTP 2025-30) continues to lower energy costs for export-oriented industries. Cheaper electricity and gas — if passed on to the right sectors like IT, mining, value-added agriculture, light manufacturing and services — can help Pakistan grow its exports, climb global supply chains, and attract long-term FDI. Let exports earn the right to cut rates. Let Moody's and S&P reward discipline with credit upgrades. Let credit default swap spreads tighten, PIA and ZTBL get privatised, and DISCOs become financially viable. That's when we'll have truly earned macroeconomic space for deeper cuts. Remittance risk: the sleeping volcano Another red flag that must not be ignored is the government's rollback of incentives on incremental remittances — a move that could seriously dent the current account. The Rs200 billion ($700 million) subsidy in previous years catalysed nearly $8 billion in incremental inflows — a 10x multiplier by some measures. Removing this carrot risks not just a slowdown in remittances but also a hit to FX reserves and rupee stability. If remittances stall, and imports rise as expected (especially due to reduced duties on used cars and improved cotton harvest conditions), we could see import bills swell by 15-20% over the next two years, or $9-12 billion higher by FY27. Even with gradual 3-4% annual rupee depreciation, strong export growth and a 1-2% current account deficit might be manageable – but only if we resist the urge to cut early. Better tools than rate cuts Instead of cutting rates broadly, the SBP should fine-tune credit where it's needed most: a) Increase auto financing limits to support local manufacturers threatened by rising used car imports. b) Expand low-cost housing schemes to revive construction and employment. c) Enhance subsidised student and SME loans, especially in high-impact sectors like IT, logistics, and value-added exports. d) Scale up green financing tools, particularly EV loans, solar leasing, and youth/agribusiness schemes under PM's programmes. These targeted tools are far more effective than blunt rate cuts, and crucially, they don't unleash import-led growth. Time to hold Pakistan's real long-term growth won't come from slashing rates prematurely. It will come from shifting the engine of growth towards productivity, not consumption. That means: Strengthening local linkages in mining and agricultural exports; promoting value-added manufacturing with predictable energy and logistics policies; deepening integration into global IT and services value chains; and clearing fiscal clutter, like privatising loss-making state enterprises, to finally create room for sustainable interest rate compression. In the end, monetary policy is not a magic wand. It's a signal. And right now, the best signal SBP can send to global investors, credit agencies, and Pakistanis alike is stability, prudence, and patience. Because when you're walking a tightrope, the smartest thing you can do — is not jump. The writer is an independent economic analyst


Business Recorder
8 hours ago
- Business Recorder
0.5pc appreciation
KARACHI: Rupee gained against the US dollar in the inter-bank market as it appreciated by Rs1.42 or 0.50% during the previous week. The local unit closed at 283.45, against 284.87 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP). The week-on-week gain was 93-week high, AKD Securities said, as a reported crackdown against currency smugglers helped the rupee recover against the dollar. The central bank will continue to build its dollar stockpile but at a slower pace without putting undue pressure on the rupee, according to Citigroup Inc., Bloomberg reported. The foreign exchange reserves held by the SBP decreased by $69 million during the week ending July 18, 2025, as the country made scheduled external debt repayments. According to SBP data, the central bank's reserves fell to $14.46 billion, down from $14.53 billion recorded a week earlier. Prime Minister Shehbaz Sharif decided to continue the remittance incentive scheme, directing the Ministry of Finance to immediately release funds on a priority basis for the Workers' Remittances Incentive Scheme. Open-market rates In the open market, the PKR gained 1.91 rupee for buying and 2.05 rupees for selling against USD, closing at 285.46 and 286.55, respectively. Against Euro, the PKR gained 67 paise for buying and 1.91 rupee for selling, closing at 334.25 and 336.36, respectively. Against UAE Dirham, the PKR gained 99 paise for buying and 1.22 rupee for selling, closing at 77.53 and 78.00, respectively. Against Saudi Riyal, the PKR gained 1.06 rupee for buying and 1.05 rupee for selling, closing at 75.75 and 76.30, respectively. ========================================= THE RUPEE ========================================= Weekly inter-bank market rates for dollar ========================================= Bid Close Rs. 283.45 Offer Close Rs. 283.65 Bid Open Rs. 284.46 Offer Open Rs. 284.65 ========================================= Weekly open-market rates for dollar ========================================= Bid Close Rs. 285.46 Offer Close Rs. 286.55 Bid Open Rs. 286.35 Offer Open Rs. 287.50 ========================================= Copyright Business Recorder, 2025