Govt Unveils $1bn National AI Plan, Rs70bn Digital Connectivity Push in PSDP 2026-27

The Ministry of Information Technology and Telecommunication has proposed two major technology initiatives in the Public Sector Development Program (PSDP) 2026-27 to launch in 2026—a $1 billion National AI Ecosystem Development Program (NAIEDP) and a Rs70 billion Pakistan Digital Infrastructure Connectivity Plan including mobile broadband, fiberization, and regional corridors, signaling an ambitious push to transform the country’s digital landscape over the next five years.

According to official documents, the National AI Ecosystem Development Program will run from 2026 to 2031 with a total allocation of $1 billion (approximately Rs288 billion). An initial $100 million (Rs28.8 billion) has been proposed for fiscal year 2026-27. Physical and financial progress currently stand at 0 percent, with implementation scheduled to begin in 2026-27.

The AI program aims to establish advanced data centers in major cities to provide secure and affordable computing services for startups, universities, and research institutions. It also focuses on ensuring sovereign storage and processing of national data.

A key feature of the initiative is the development of a national language and AI system trained on local datasets, including specialized solutions for health, agriculture, and legal sectors. The plan also includes fully funded scholarships, large-scale training programs, and strengthened university-industry collaboration to build a skilled AI workforce.

In addition, the initiative seeks to support startups through early- and growth-stage funding, mentoring, and business development assistance to attract private investment and improve market access.

Parallel to the AI push, the government has proposed the Pakistan Digital Infrastructure Connectivity Plan (2026–2030) with an estimated cost of Rs70 billion. An allocation of Rs 5,000 million has been proposed for 2026-27.
The connectivity project aims to expand broadband penetration, improve service quality, accelerate fiberization, and support the acquisition of 5G spectrum. Telecom operators will utilize the fund for mobile broadband expansion and fiber rollout, with the responsibility to repay loans under agreed terms and conditions.

Officials say the twin initiatives are designed to modernize public sector operations, improve digital governance, strengthen energy sector planning, introduce centralized digital public complaint platforms, and enhance interdepartmental coordination.

If implemented as planned, the programs could mark one of the country’s most significant investments in artificial intelligence and digital infrastructure, positioning Pakistan to compete in the rapidly evolving global digital economy.

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