The threat of artificial intelligence (AI)-powered cyberattacks against Pakistan's financial institutions and critical infrastructure is increasing, with banks, energy installations, water utilities, electricity networks, manufacturing facilities, and transport systems potentially at risk. The National Cyber Emergency Response Team (NCERT), operating under the Cabinet Division, has issued an advisory on emerging AI-driven cyber threats, warning that artificial intelligence, automated bots, botnets, and agentic tools are increasing the speed, scale, and sophistication of cyberattacks.
According to the advisory, banks' core banking systems, digital banking platforms, application programming interfaces (APIs), payment systems, and customer-facing applications could become potential targets. Such attacks could disrupt online services and manipulate displayed account balances, potentially triggering confusion and panic among customers.
The advisory also warns that critical infrastructure faces growing risks from vulnerabilities in industrial control systems, and insecure remote-access arrangements could expose essential services to cyber intrusions. Potential targets include oil and gas installations, refineries, pipelines, water utilities, electricity generation and distribution networks, as well as manufacturing and transportation systems.
Citing incidents involving refrigeration and freezer systems at European supermarkets, the advisory highlights how attacks on interconnected operational systems can produce physical and commercial consequences. However, it clarifies that the involvement of AI in those particular European incidents has not yet been confirmed.
The NCERT has recommended that financial institutions closely monitor automated login attempts, repeated authentication failures, unusual API requests, changes in application configurations, and abnormal transaction patterns. Banks have also been advised to watch for discrepancies between core banking records and customer account balances, as manipulation of displayed balances could undermine public confidence in digital banking services.
For the energy and industrial sectors, the advisory recommends monitoring unusual changes in refinery operations, pipeline systems, electricity grids, and power-sector operating parameters. It further calls for comprehensive security reviews of core banking systems, APIs, and payment gateways, alongside integrity checks to ensure consistency between customer-facing applications and core banking records.
Financial institutions have been urged to conduct independent transaction reviews and closely monitor bot-driven activities and suspicious automated attempts to access their systems. Regarding critical infrastructure, the advisory recommends identifying all internet-connected Internet of Things (IoT) and operational technology (OT) assets, restricting direct internet access, implementing segmentation between OT and IT networks, and ensuring continuous monitoring of connected systems.
Organizations have been advised to regularly install security updates, maintain alternative operating procedures, and assess their preparedness to counter AI-enabled, bot-driven cyberattacks. The advisory further recommends strengthening incident-response mechanisms, business continuity arrangements, and security monitoring capabilities to minimize disruption in the event of a cyber incident.