The government has proposed the creation of a Pakistan Emerging Technology and AI Fund, estimated at Rs 28.8 billion, aimed at boosting innovation financing and strengthening the country’s digital economy. The initiative has been included under the IGNITE programme, with an initial allocation of Rs 3 billion proposed for FY2026-27.
Planned over a 60-month period from 2026 to 2031, the fund will operate as a National Fund of Funds, designed to bridge early stage and growth stage financing gaps through a private sector-led investment model. Resources are expected to flow into local venture capital funds, private equity vehicles, and high-potential startups.
Officials highlighted that the initiative aims to strengthen emerging technology ecosystems, including artificial intelligence, advanced digital solutions, and innovation driven enterprises, which are seen as critical for future export growth and the development of a knowledge-based economy.
Policy analysts suggest the fund could mobilize private capital, improve startup survival rates, and enhance Pakistan’s competitiveness in global technology markets. Being a new initiative under the Public Sector Development Programme (PSDP), cumulative expenditure currently stands at zero and awaits allocation and operational rollout, with review scheduled during upcoming federal budget consultations for FY2026-27.