Govt Allocates Over Rs 16 Billion for IT & Telecom Projects in PSDP 2025–26

The federal government has proposed an allocation of Rs 16.22 billion for the Information Technology and Telecommunication Division under the Public Sector Development Program (PSDP) for the fiscal year 2025–26. The funding will support both ongoing and new schemes aimed at accelerating digital transformation in the country. Out of the total amount, Rs 15.77 billion has been earmarked for ongoing projects, while Rs 450 million is set aside for new initiatives.

Major Ongoing Projects

One of the largest recipients of funds is the Establishment of IT Park in Karachi (PSHIT), with a total cost of Rs 31.19 billion. For 2025–26, the project has been allocated Rs 6 billion. This initiative is expected to provide modern infrastructure to tech companies and startups, boosting the digital economy.

Another significant initiative is the Prime Minister’s Initiatives for IT Startups and Venture Capital, which aims to promote entrepreneurship in the tech sector. The government has allocated Rs 1.572 billion for the program in the upcoming fiscal year.

Other key ongoing schemes include:

• Cyber Security for Digital Pakistan (Rs 250 million)
• Smart Office for Federal Ministries through NITB (Rs 200 million)
• Technology Park Development Project in Islamabad (Rs 500 million)
• NGMS Core Upgradation (Rs 1.15 billion)
• National Semiconductor HRD Program Phase-I (Rs 500 million)
• Revamping of IT Industry (Rs 500 million)

New Projects on the Table

Among the newly proposed projects, the National Artificial Intelligence Advancement Initiative has received an allocation of Rs 100 million. Although not yet approved, the scheme highlights the government’s growing interest in AI adoption and innovation.

Another notable entry is the Smart Islamabad Initiative, with a proposed allocation of Rs 250 million. This project aims to introduce smart city solutions in the capital, improving urban management through technology. The DDRP Division ISO Compliance and IT Export Enhancement project is also listed among the new schemes, with Rs 100 million allocated for strengthening IT export potential and aligning operations with global standards.

With a clear division between infrastructure development, cybersecurity, startup funding, and emerging tech, the 2025–26 development plan offers a comprehensive approach to strengthening Pakistan’s digital landscape. These investments are expected to improve the ease of doing business, generate employment in the IT sector, and help Pakistan stay competitive in the global digital economy.

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