The Ministry of IT & Telecom has proposed a significant investment in Pakistan’s digital infrastructure and technological advancement by drafting its Public Sector Development Program (PSDP) budget for the next fiscal year. The ministry has put forward a request for Rs. 43.65 billion to fund 18 key projects aimed at strengthening the country’s IT and telecommunications sector.
According to official sources, the proposed budget includes substantial allocations for various initiatives under the Special Communications Organization (SCO), the Pakistan Software Export Board (PSEB), and major IT development projects. The ministry has earmarked Rs. 3.42 billion for six projects under SCO, which plays a crucial role in providing telecommunications and internet services in remote areas, particularly in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB). In addition, Rs. 2.83 billion has been allocated to seven projects spearheaded by PSEB, a key institution working to promote and expand Pakistan’s software exports.
A major portion of the proposed budget, amounting to Rs. 11.46 billion, has been designated for three large-scale IT projects that are expected to enhance digital connectivity, improve cybersecurity, and foster innovation in Pakistan’s tech ecosystem. The National Telecommunication and Information Security Board (NTISB) has also been allocated Rs. 249 million for a dedicated project focused on strengthening information security across government institutions.
One of the key proposals within the budget is a Rs. 1 billion allocation aimed at expanding cellular network coverage in Azad Kashmir and Gilgit-Baltistan. This initiative is particularly significant as the region has been witnessing an increase in tourism, and improved mobile connectivity is expected to facilitate economic growth and boost the local economy. The government’s focus on enhancing digital access in remote and mountainous areas aligns with its broader vision of bridging the digital divide and promoting inclusive technological growth.
Furthermore, the Islamabad IT Park project, a flagship initiative designed to boost Pakistan’s IT sector by providing state-of-the-art infrastructure to startups and tech companies, has been allocated Rs. 9.85 billion. The IT Park aims to serve as a hub for innovation, offering office spaces, incubation facilities, and research centers to support technology-driven businesses. Given the rapid expansion of the country’s IT industry and growing global demand for digital services, the project is expected to play a crucial role in positioning Pakistan as a leading technology hub in the region.
The budget proposals also include Rs. 1.5 billion for the Digital Economy Enhancement Project, which aims to modernize and digitize key government services, promote e-commerce, and create a more business-friendly environment through technology-driven solutions. Additionally, the Cyber Security for Digital Pakistan initiative has been allocated Rs. 250 million to strengthen the nation’s cybersecurity framework and protect critical digital infrastructure from cyber threats.
Recognizing the importance of fostering entrepreneurship and innovation, the ministry has also proposed Rs. 2.47 billion for its IT Startups Support Program for the fiscal year 2025-26. This initiative is designed to provide financial and technical support to emerging tech startups, helping them scale their businesses and compete in the global digital economy. With Pakistan’s startup ecosystem gaining momentum and attracting international investment, this funding is expected to further accelerate the growth of local entrepreneurs and innovative ventures.
The Ministry of IT & Telecom’s proposed PSDP budget reflects the government’s commitment to digital transformation, economic growth, and technological innovation. If approved, these investments will significantly contribute to expanding digital connectivity, strengthening cybersecurity, fostering entrepreneurship, and improving Pakistan’s position in the global IT landscape. With the increasing role of technology in shaping economies, the allocation of resources to IT infrastructure and digital services is a step towards a more connected and competitive Pakistan.
