MoITT Seeks Rs 71.84bn for PSDP 2026–27 Projects, Tripling Current IT Budget

The Ministry of Information Technology and Telecommunication (MoITT) has proposed a massive Rs 71.84 billion allocation for 20 development projects under the Public Sector Development Programme (PSDP) for 2026-27 — a more than threefold increase from the Rs 22.227 billion earmarked in the current fiscal year.

According to official documents, the proposed portfolio includes 12 ongoing projects and 8 new initiatives. Out of the total proposed allocation, Rs 32.13 billion has been proposed for ongoing projects, while Rs 39.71 billion has been sought for new schemes.

Among executing agencies, the Ministry of IT & Telecom (MoITT) itself accounts for the largest share, proposing Rs 37.79 billion for five projects, including two new initiatives worth Rs 33.8 billion.

MoITT Seeks Rs 71.84bn for PSDP 2026–27 Projects, Tripling Current IT Budget

The Pakistan Software Export Board (PSEB) has proposed Rs 24.39 billion for seven ongoing projects under PSDP for 2026-27. However, no new project was proposed in the upcoming budget for 2026-27.

The flagship IT Park project in Islamabad has reached 72 percent physical completion and over 62 percent financial utilisation, with cumulative spending of Rs 14.5 billion against a total project cost of Rs 23.3 billion. Rs 6.730 billion had been demanded for the next fiscal year under PSDP. Officials expect the project to significantly boost IT exports and generate over 5,000 direct and indirect jobs after completion.

Progress remains slow on the IT Park project in Karachi, where physical progress stands at just 10 percent and financial progress at 5 percent despite an estimated cost of Rs 31.2 billion. A total of Rs 11.500 million has been proposed in the PSDP for 2026-27. The project aims to establish a 111,000 square metre technology facility to support SMEs, startups, and technology workers.

Under startup and venture ecosystem support initiatives, the government is scaling up funding and institutional frameworks across Pakistan.

Rs 1.802 billion had been proposed in the PSDP for the next fiscal year. The Pakistan Startup Fund has operationalised an advisory structure and grant disbursement mechanism, with applications under due diligence. Parallel efforts under Bridge Start Pakistan are focused on building partnerships with incubators and accelerators to strengthen the innovation pipeline. Further, Rs 1.017 billion has been proposed for the National Semiconductor HR development programme.

The Special Communications Organisation (SCO) has sought Rs 2.67 billion for four projects, including three new ones. These include Rs 298.75 million for one ongoing project and Rs 2.371 billion for three new projects.

See Also Islamabad IT Park Nears Completion as PSEB Proposes Rs24.39bn for FY2026-27

Documents showed the cellular expansion phase (2024–2027) carries an estimated cost of around Rs 1.997 billion, with fiscal year 2027 demand projected at nearly Rs 298.9 million. Physical progress has reached about 40 percent, while financial utilisation stands at about 19 percent.

Separately, the new convergent billing system project (2025–2028), estimated at Rs 1.888 billion, aims to enable unified billing across cellular, WLL, LDI, cloud, and FTTH services. It will support up to four million subscribers. Meanwhile, the hybrid power solution project (2024–2028), valued at Rs 870 million, is expected to ensure uninterrupted telecom services in far-flung areas while reducing operational expenditure. A major new initiative for communication services in unserved and underserved areas (2026–2029), costing Rs2.5 billion, plans the installation of 32 new cellular sites and the expansion of service availability in key tourist and remote locations.

The National Information Technology Board (NITB) has proposed Rs 743 million for three projects. IGNITE has sought Rs 3 billion for a new initiative. Meanwhile, NTISB has requested Rs 3.24 billion for a single ongoing project.

The proposed allocations indicate a stronger financial push toward new initiatives compared to ongoing schemes, signaling the ministry’s focus on expanding digital services, cybersecurity, telecom infrastructure, and innovation-led growth in the upcoming fiscal year. The PSDP 2026–27 proposals would undergo further scrutiny before final approval.