The Ministry of Information Technology and Telecommunication has proposed two major technology initiatives in Public sector development program (PSDP) 2026-27 to launch in 2026, a $1 billion National AI Ecosystem Development Program (NAIEDP) and a Rs 70 billion Pakistan Digital Infrastructure Connectivity Plan including Mobile broadband, fiberization and regional corridor, signaling an ambitious push to transform the country’s digital landscape over the next five years.
The AI initiative is proposed to run from 2026 to 2031 with a total allocation of $1 billion, equivalent to about Rs 288 billion. For the first year, an initial allocation of $100 million (Rs 28.8 billion) has been proposed for the 2026-27 fiscal year. Both physical and financial progress currently stand at zero, with implementation scheduled to begin next year.
The program aims to establish advanced data centers in major cities to provide secure and affordable computing services for startups, universities and research institutions. A key objective is to ensure sovereign storage and processing of national data, reducing reliance on foreign infrastructure.
Another major component is the development of a national language and AI system trained on local datasets. This system is expected to support sector-specific applications in healthcare, agriculture and the legal sector. The plan also includes fully funded scholarships, large-scale training initiatives and stronger collaboration between universities and industry to build a skilled artificial intelligence workforce.
To encourage innovation, the AI program proposes support for startups through early- and growth-stage funding, mentoring and business development assistance, with the aim of attracting private investment and improving access to markets.
Running in parallel, the government has proposed the Pakistan Digital Infrastructure Connectivity Plan (2026-2030) at an estimated cost of Rs 70 billion. An allocation of Rs 5 billion has been proposed for the 2026-27 fiscal year.
The connectivity project focuses on expanding mobile broadband coverage, improving service quality, accelerating fiber deployment and supporting the acquisition of 5G spectrum. Under the plan, telecom operators will use the funds for broadband expansion and fiber rollout, with loans to be repaid under agreed terms and conditions.
Officials say the two initiatives are designed to modernize public sector operations, strengthen digital governance, improve planning in the energy sector, introduce centralized digital public complaint systems and enhance coordination between government departments.
