Budget 2026-27: Govt Proposes Rs 20 Billion for IT & Telecom Projects, Far Below MoITT Demand

The federal government has proposed an allocation of Rs 20 billion for development projects under the Information Technology and Telecommunication Division in the fiscal year 2026-27, significantly lower than the Rs 71.84 billion sought by the Ministry of Information Technology and Telecommunication (MoITT) under the Public Sector Development Programme (PSDP).

According to budget documents, the proposed allocation includes Rs8.24 billion in local funding and Rs11.76 billion in foreign assistance for a total of 13 development projects aimed at strengthening Pakistan’s digital infrastructure, technology ecosystem, cybersecurity capabilities, and innovation sector.

The proposed budget covers 11 ongoing projects and two new initiatives, reflecting the government’s continued focus on digital transformation despite the substantial gap between requested and approved funding.

AI Ecosystem and Secure Communications Among New Projects

Among the new schemes, the government has earmarked Rs1 billion for the National AI Ecosystem Development Programme, including equal contributions from local and foreign funding sources. The initiative is expected to support artificial intelligence research, innovation, skills development, and industry collaboration.

Another Rs 250 million has been allocated for the PakAwaz Secure Mobile Communication Ecosystem, a project aimed at strengthening secure communication capabilities and promoting indigenous digital solutions.

Major Funding for IT Parks and Digital Economy Projects

The largest allocation among ongoing projects has been proposed for the Technology Park Development Project (TDP), Islamabad, which is set to receive Rs5.85 billion, including Rs5.7 billion in foreign assistance.

The government has also proposed Rs3.016 billion for the Digital Economy Enhancement Project, which is being financed through World Bank support. The project seeks to improve digital infrastructure, promote technology adoption, and accelerate economic digitization.

Meanwhile, the National Information Technology Board (NITB) is expected to receive Rs500 million for its Smart Islamabad Initiative, which aims to enhance digital governance and smart city services in the federal capital.

Several projects aimed at strengthening Pakistan’s technology ecosystem have also secured funding in the proposed budget.

The government has allocated:

• Rs1 billion for Prime Minister-led initiatives supporting IT startups, specialized training programs, and venture capital development.

• Rs2 billion for the Revamping of IT Industry Project.

• Rs1.25 billion for the Cyber Security for Digital Pakistan Initiative.

• Rs500 million for the National Semiconductor HR Development Programme (NSHRDP) Phase-I.

• Rs524.64 million for the National Artificial Intelligence Advancement Initiative.

The allocations reflect increasing policy emphasis on emerging technologies, digital skills development, cybersecurity, and innovation-driven economic growth.

Karachi IT Park and Connectivity Projects Receive Funding

The budget also includes Rs 3.75 billion for the establishment of an IT park in Karachi, including Rs 2.545 billion in foreign assistance. The project is being executed through the Pakistan Software Export Board (PSEB) and is expected to provide modern infrastructure for technology companies and startups.

In addition, Rs298.875 million has been proposed for the expansion of cellular services in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) Phase IV, a project being implemented by the Special Communications Organisation (SCO).

Another Rs65 million has been earmarked for the GDPR-driven ISO Compliance and IT Exports Enhancement Programme, aimed at improving international compliance standards and supporting Pakistan’s IT export industry.

Despite the lower-than-requested allocation, the proposed budget signals continued government investment in artificial intelligence, cybersecurity, digital infrastructure, startup development, and technology parks as Pakistan seeks to strengthen its digital economy and expand its growing IT export sector.

Also read:

Budget 2026-27: MoITT Proposes Tax Relief for Mobile Users, Recommends Cuts in GST and Advance Tax