MoITT Seeks Record Rs 71.8 Billion PSDP Allocation for IT Parks, Startups and Telecom Expansion

Pakistan’s Ministry of Information Technology and Telecommunication (MoITT) has proposed a record Rs 71.84 billion allocation for 20 development projects under the Public Sector Development Programme (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.

The government has proposed an additional Rs 6.73 billion for the Islamabad IT Park during the next fiscal year. Authorities expect the facility to play a key role in boosting Pakistan’s IT exports while generating more than 5,000 direct and indirect employment opportunities after completion.

In contrast, progress on the Karachi IT Park project remains comparatively slow. Official figures show physical completion at around 10%, while financial progress stands near 5% despite the project’s estimated cost of Rs 31.2 billion.

The government has proposed Rs 11.5 billion for the Karachi IT Park project under PSDP 2026-27. The facility is planned as a 111,000-square-meter technology hub aimed at supporting startups, SMEs, and technology professionals.

The government is also expanding support for Pakistan’s startup ecosystem and semiconductor sector.

Under startup and innovation initiatives, Rs 1.802 billion has been proposed for the next fiscal year. Officials said the Pakistan Startup Fund has already operationalized its advisory and grant disbursement mechanisms, while applications are currently undergoing due diligence.

Parallel efforts under the “Bridge Start Pakistan” initiative are focused on partnerships with incubators and accelerators to strengthen the country’s innovation ecosystem.

Additionally, the government has proposed Rs 1.017 billion for a National Semiconductor Human Resource Development Programme aimed at developing specialised technical talent.

The Special Communications Organisation (SCO) has separately sought Rs 2.67 billion for four telecom-related projects, including three new initiatives.

Among them, the ongoing Cellular Expansion Phase (2024-2027) project carries an estimated cost of nearly Rs 1.997 billion. Officials reported physical progress of approximately 40%, while financial utilization currently stands near 19%.

The proposed convergent billing system project, estimated at Rs 1.888 billion, aims to introduce unified billing services across cellular, wireless local loop (WLL), long-distance international (LDI), cloud and fibre-to-the-home (FTTH) services, with the capacity to support up to four million subscribers.

Meanwhile, a hybrid power solution project worth Rs 870 million is intended to improve uninterrupted telecom connectivity in remote regions while lowering operational costs.

Another major initiative targeting underserved and unserved areas has been proposed at a cost of Rs 2.5 billion. The project plans to install 32 new cellular sites and improve telecom services in tourist destinations and remote regions.

The National Information Technology Board (NITB) has proposed Rs 743 million for three projects, while Ignite has sought Rs 3 billion for a new initiative. Separately, the National Telecommunication and Information Security Board (NTISB) has requested Rs 3.24 billion for a single ongoing project.

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