The federal government has proposed an allocation of Rs. 16.29 billion for ongoing projects under the Information Technology and Telecommunication Division in the Public Sector Development Program (PSDP) 2026-27, reflecting its continued focus on digital transformation, innovation, and technology-driven economic growth.
According to budget documents, the funding will support a range of projects aimed at strengthening Pakistan’s digital infrastructure, expanding technology ecosystems, and promoting innovation across the country.
Among the largest allocations is the Technology Park Development Project in Islamabad, which has been earmarked Rs. 6.81 billion for the upcoming fiscal year. The project is considered one of the government’s flagship initiatives and is expected to provide modern facilities for technology companies, startups, and entrepreneurs.
Another major allocation has been proposed for the Establishment of IT Park at Karachi, which will receive Rs. 3.75 billion. The project is expected to boost the country’s technology sector by creating new opportunities for IT businesses and fostering innovation.
The government has also allocated Rs. 3.02 billion for the Digital Economy Enhancement Project, a World Bank-supported initiative designed to accelerate digital adoption, improve digital services, and enhance economic opportunities through technology.
In addition to large-scale infrastructure projects, the PSDP includes funding for several strategic technology initiatives. The Revamping of IT Industry project has been allocated Rs. 1 billion, while the National Artificial Intelligence Advancement Initiative is set to receive Rs. 524.64 million.
To strengthen cybersecurity capabilities, the government has proposed Rs. 330 million for the Cyber Security for Digital Pakistan project. Meanwhile, Rs. 250 million has been earmarked for the National Semiconductor Human Resource Development Program, aimed at developing skilled professionals for the growing semiconductor industry.
The development program also includes funding for the Smart Islamabad Initiative, expansion of cellular services in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB), along with compliance and export enhancement programs intended to support the country’s technology exports.
Overall, the portfolio of ongoing IT and telecommunications projects carries a total cost of approximately Rs. 79.79 billion, with Rs. 16.29 billion proposed for allocation during the fiscal year 2026-27.
The proposed funding highlights the government’s commitment to accelerating Pakistan’s digital economy, supporting emerging technologies such as artificial intelligence, and creating a more favorable environment for startups and technology-driven businesses.
