The federal government has proposed an allocation of Rs. 20 billion for 13 development projects under the Information Technology and Telecommunication Division in the Public Sector Development Programme for fiscal year 2026-27, a figure that falls significantly short of the Rs. 71.84 billion the Ministry of Information Technology and Telecommunication had demanded, reflecting the broader fiscal constraints shaping the upcoming budget.
The proposed Rs. 20 billion comprises Rs. 8.24 billion in local funding and Rs. 11.76 billion in foreign assistance, covering 11 ongoing development projects at Rs. 18.75 billion and two new schemes at Rs. 1.25 billion. Under the new projects, Rs. 1 billion has been earmarked for the National Artificial Intelligence Ecosystem Development Programme, split equally between local funding and foreign assistance, while Rs. 250 million has been allocated for the PakAwaz Secure Mobile Communication Ecosystem project.
Among the 11 ongoing projects, the Technology Park Development Project in Islamabad has received the largest proposed allocation at Rs. 5.85 billion, predominantly covered through Rs. 5.7 billion in foreign assistance. The Digital Economy Enhancement Project, funded by the World Bank, has been proposed at Rs. 3.016 billion, while the Smart Islamabad Initiative of the National Information Technology Board has been allocated Rs. 500 million. Further allocations include Rs. 1 billion for Prime Minister initiatives supporting information technology startups, specialised training and venture capital, Rs. 2 billion for the Revamping of the Information Technology Industry project, Rs. 500 million for the National Semiconductor Human Resource Development Programme Phase One, and Rs. 1.25 billion for the Cyber Security for Digital Pakistan initiative.
The budget also proposes Rs. 524.64 million for the National Artificial Intelligence Advancement Initiative under the Ministry of Information Technology and Telecommunication, and Rs. 3.75 billion for the establishment of an Information Technology Park in Karachi under PSEB, comprising Rs. 1.2 billion in local funding and Rs. 2.545 billion in foreign assistance. An allocation of Rs. 298.875 million has been proposed for the Expansion of Cellular Services in Azad Jammu and Kashmir and Gilgit-Baltistan Phase Four under the Special Communications Organisation, alongside Rs. 65 million for the GDPR-Driven ISO Compliance and Information Technology Exports Enhancement Programme under PSEB. The Islamabad Information Technology Park, one of the government’s flagship projects, has reached 72 percent physical completion and over 62 percent financial utilisation, with cumulative spending crossing Rs. 14.5 billion against its total estimated cost of Rs. 23.3 billion, making it the most advanced of the active technology infrastructure projects in the current portfolio.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
