The Federal Government has proposed an allocation of Rs20 billion, including Rs8.24 billion in local funding and Rs11.76 billion in foreign assistance, for 13 development projects of the Information Technology and Telecommunication Division against the demand of Rs 71.8 billion in the budget for the fiscal year 2026–27.
According to budget documents, the government has proposed an allocation of Rs18.75 billion for 11 ongoing development projects during the fiscal year 2026–27, including Rs7.488 billion in local funding and Rs11.26 billion in foreign assistance.
For two new schemes, the government has proposed a total allocation of Rs1.25 billion comprising Rs750 million in local funding and Rs500 million in foreign assistance for the fiscal year 2026–27.
Under the new projects, Rs1 billion has been earmarked for the National AI Ecosystem Development Programme, including Rs500 million in local funding and Rs500 million in foreign assistance. Another Rs250 million has been allocated for the PakAwaz Secure Mobile Communication Ecosystem project.
For the 11 ongoing development projects, the government has proposed Rs5.85 billion, including Rs150 million in local funding and Rs5.7 billion in foreign assistance, for the Technology Park Development Project (TDP), Islamabad, under the Ministry of Information Technology and Telecommunication (MoITT).
An allocation of Rs3.016 billion, funded by the World Bank, has been proposed for the Digital Economy Enhancement Project, while Rs500 million has been earmarked for the Smart Islamabad Initiative of the National Information Technology Board (NITB)
The budget also includes Rs1 billion for the Prime Minister’s initiatives supporting IT startups, specialised IT training and venture capital, and Rs2 billion for the Revamping of IT Industry project. In addition, Rs500 million has been allocated for the National Semiconductor HR Development Programme (NSHRDP) Phase-I and Rs1.25 billion for the Cyber Security for Digital Pakistan initiative.
Furthermore, the government has proposed Rs524.64 million for the National Artificial Intelligence Advancement Initiative under MoITT. An allocation of Rs3.75 billion, including Rs1.2 billion in local funding and Rs2.545 billion in foreign assistance, has been earmarked for the establishment of an IT Park in Karachi under the Pakistan Software Export Board (PSEB).
The budget also proposes Rs298.875 million for the Expansion of Cellular Services in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) Phase-IV project being executed by the Special Communications Organisation (SCO), and Rs65 million for the GDPR-Driven ISO Compliance and IT Exports Enhancement Programme under PSEB.
MoITT had proposed a record Rs 71.84 billion allocation for 20 development projects under PSDP for the fiscal year 2026-27.
The proposed allocation marks a sharp increase from the Rs 22.227 billion earmarked for the sector in the current fiscal year, according to official budget documents.
The proposed PSDP portfolio includes 12 ongoing projects and eight new initiatives. Of the total proposed outlay, Rs 32.13 billion has been allocated for ongoing schemes, while Rs 39.71 billion has been sought for new projects.
Among executing agencies, the Ministry of IT itself accounts for the largest share of proposed funding, seeking Rs 37.79 billion for five projects, including two major new initiatives valued at Rs 33.8 billion.
The Pakistan Software Export Board (PSEB) has proposed Rs 24.39 billion for seven ongoing projects in the upcoming fiscal year, although no new projects have been included in its PSDP pipeline for 2026-27.
One of the government’s flagship initiatives, the IT Park Islamabad project, has reached 72% physical completion and more than 62% financial utilization. Officials said cumulative spending on the project has crossed Rs 14.5 billion against its total estimated cost of Rs 23.3 billion.
