Pakistan 'overperformer' in innovation, climbs 4 ranks globally: report

Pakistan has climbed to 95th place globally in the 2026 Global Innovation Index, a four-rank improvement from last year. This ranking places Pakistan in the "overperformer" category, meaning the country is generating more innovation than expected for its level of economic development. This is the fourth time Pakistan has earned this designation, previously achieved in 2022 and 2024.

The index report highlights Pakistan's strength in the digital economy, with notable achievements in mobile app creation, ICT services exports, high-tech imports, and software spending. The country's "relatively strong" scientific production and university quality also contribute to its developing digital economy. Pakistan ranks 121st in terms of innovation inputs and 72nd in terms of innovation outputs, both showing improvement from last year.

The report suggests that innovation does not always follow a linear progression based on income levels. While Switzerland, Sweden, and the United States remain the top three innovation economies, Pakistan has climbed up to the 95th position, overtaking the Netherlands (7th) and Austria (18th). Asian economies are increasingly represented among the top performers, with South Korea, Singapore, China, Japan, and Hong Kong making the top 25.

The report indicates that while progress is being made across the innovation cycle, most indicators are still below the decade average. The global growth rate is expected to slow down from 3.4% in 2025 to around 3% in 2026 due to higher energy prices and increased uncertainty. However, AI-related investment is seen as the main driver of innovation, with hyper-scalers expected to spend over $1 trillion on AI infrastructure in the next two years.