The National Information Technology Board (NITB) has suspended Islamabad Smart City project after funding shortages prevented continuation of planned implementation activities.
Official documents confirmed the allocated Rs708.3 million budget proved insufficient, forcing authorities to halt progress despite physical work already reaching approximately 20 percent completion.
The documents further revealed that NITB requested an additional Rs208 million for fiscal year 2026‑27, but bids for equipment exceeded Rs1 billion, widening the financial gap.
The Fusion Centre, designed for centralized monitoring and coordination, emerged as the most expensive component, with equipment costs surpassing initial estimates significantly.
Officials stated financial progress remains at zero, while recommendations have been submitted to revise the PC‑I of the project and increase overall cost estimates.
The Ministry of Information Technology and Telecommunication (MoITT) is working to secure approval for the revised PC‑I before the upcoming federal budget presentation.
Approval would allow continuation of the first bidding process already initiated, enabling authorities to resume halted implementation activities under the Smart Islamabad Initiative.
The project carries a two‑year completion deadline and is considered a flagship digital governance effort aimed at improving surveillance, management, and citizen services.
