The federal government has decided against reducing the development budget of the Ministry of Information Technology and Telecommunication, protecting the full suite of projects launched under the Digital Pakistan initiative from the cuts that have been applied across several other federal ministries in the fiscal year 2026-27 budget exercise. Federal Minister for IT and Telecommunication Shaza Fatima Khawaja confirmed the outcome in a briefing to senior journalists, describing it as a significant win for the technology sector at a time when overall development spending faces severe fiscal constraints driven by International Monetary Fund programme requirements and a development backlog exceeding Rs 10.8 trillion.
According to the minister, the IT Ministry is expected to receive Rs 22 billion in development funding, representing the full amount it had requested, while the overall IT budget inclusive of long-term projects amounts to Rs 76 billion. The protected allocation stands in contrast to the Rs 71.84 billion the ministry had initially proposed under the Public Sector Development Programme, suggesting that the final figure reflects a negotiated outcome that preserves core digital initiatives while operating within the tighter fiscal envelope that the Finance Division has imposed across the development budget. Minister Shaza Fatima attributed the outcome to a clear and consistent commitment from Prime Minister Shehbaz Sharif, the Ministry of Finance, and planning authorities to support the country’s digital development agenda even as other sectors absorb cuts.
The protected budget will fund several priority areas. Special allocations have been earmarked for artificial intelligence training programmes and startup development, reflecting the government’s intent to accelerate implementation of Pakistan’s National Artificial Intelligence Policy, which the minister confirmed is progressing rapidly with multiple artificial intelligence-related projects already included in the development budget. Universal Service Fund resources will be directed toward improving internet access and connectivity in rural areas, with expanding broadband in Azad Jammu and Kashmir and Gilgit-Baltistan identified as a key connectivity priority for the year ahead. Coordination for climate change initiatives and early warning systems has also been flagged as a focus area under the ministry’s development agenda.
Digital skills development for youth remains one of the most substantive components of the budget, with significant funding allocated for training programmes targeting Pakistan’s young population. Minister Shaza Fatima disclosed that approximately 900,000 individuals received digital skills training during the current fiscal year and that baseline testing of university students has been completed, establishing a measurable foundation for tracking skills development outcomes in the year ahead. As the government prepares to formally present the Federal Budget 2026-27, the protection of the IT Ministry’s development allocation sends a clear signal about where the administration places digital infrastructure and youth technology capability in its hierarchy of national priorities, even under conditions of significant fiscal pressure.
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