Over Rs. 43 Billion Proposed for IT & Telecom Sector: Can It Transform Pakistan’s Tech Industry?

The proposed budget allocation for the IT and Telecommunication sector under the Public Sector Development Programme (PSDP) 2025-26 is set to be presented before the National Assembly Standing Committee on IT and Telecommunication. The budget outlines financial distributions among key executing agencies, including the Special Communications Organization (SCO), the Pakistan Software Export Board (PSEB), the Ministry of Information Technology and Telecommunication (MOITT), and NTISB. The total proposed budget for IT-related projects stands at Rs. 43,651.380 million, covering 18 different projects, aimed at digital transformation, IT infrastructure expansion, and workforce development. The financial distribution among executing agencies is detailed in the table below:

S. No Executing Agencies Total Projects Total Allocation (Rs. in million)
1 SCO 6 3,420.000
2 PSEB 7 28,359.258
3 MoITT 3 11,468.000
4 PAF-IAST, Haripur 1 155.000
5 NTISB 1 249.122
Total 18 43,651.380

SCO to Receive Budget for Digital Expansion Projects in AJK/GB

The Special Communications Organization (SCO) has been allocated Rs. 3,420.000 million for six key projects. These projects focus on upgrading the Next Generation Mobile Services (NGMS) Core Network and expanding cellular services in AJK and GB). Moreover, it aims to enhance Fiber-to-the-Home (FTTH) broadband services in multiple cities. The proposed funding also includes allocations for transitioning to an advanced billing system, implementing hybrid power solutions, and migrating from IPv4 to IPv6.

S. No Name of Projects Total Cost (Rs. in million) Proposed Demand for FY 2025-26 (Rs. in million)
1 NGMS Core Upgradation 715.00 615.00
2 Expansion of Cellular Services in AJK and GB Phase-IV 1997.00 1,000.00
3 Expansion of GPON FTTH Services in 11 Cities 780.00 305.00
4 Migration to Convergent Billing System 978.00 500.00
5 Hybrid Power Solution for AJK and GB Phase II 870.00 500.00
6 Transition from IPv4 to IPv6 920.00 500.00
Total 6,260.00 3,420.00

PSEB to Get Funds for IT Parks and Training Programs

PSEB has been allocated Rs. 28,359.258 million for seven projects. The major portion of the funding is dedicated to establishing IT Parks in Karachi and Islamabad.  Along with it, it also includes initiatives to enhance IT industry skill development and startup support programs. The largest allocation of Rs. 20,965.209 million has been designated for the Karachi IT Park. On the other hand, a total of Rs. 4,239.000 million is allocated to the Pakistan IT Industry Skills Export Growth Initiative.

S. No Name of Projects Total Cost (Rs. in million) Proposed Demand for FY 2025-26 (Rs. in million)
1 Pakistan IT Industry Skills Export Growth Initiative 9,959.550 4,239.00
2 PM’s Initiatives for IT Startups, Specialized Training & Venture Capital 5,000.000 2,471.049
3 National Semiconductor HR Development Program Phase-I 4,844.00 500.00
4 Establishment of IT Park in Karachi 31,199.885 20,965.209
5 Techno Park Project Islamabad (Phase-II) Feasibility Study 126,393.525 0.0
6 Technology Park Development Project Quetta Feasibility Study 14,043.725 0.0
7 Establishment of 25 Software Technology Parks with Rental Subsidy 184.00 184.00
Total 191,624.685 28,359.258

Ministry of IT and Telecommunication to Oversee Digital Transformation Projects

The Ministry of Information Technology and Telecommunication (MOITT) has been allocated Rs. 11,468.000 million for three major projects. These projects focus on digital transformation, economic enhancement through technology, and monitoring ongoing IT initiatives. The IT Park in Islamabad is the largest project under MOITT’s portfolio, with a proposed budget allocation of Rs. 9,858.000 million.

S. No Name of Projects Total Cost (Rs. in million) Proposed Demand for FY 2025-26 (Rs. in million)
1 Project Monitoring & Digital Transformation Cell 444.337 110.00
2 IT Park Islamabad 23,303.048 9,858.00
3 Digital Economy Enhancement Project 17,470.750 1,500.00
Total 41,218.135 11,468.00

Our Opinion

The proposed allocation reflects a strong commitment to enhancing Pakistan’s digital infrastructure and IT capabilities. However, the real challenge lies in the execution and timely implementation of these projects. Large-scale initiatives, such as IT Parks in Karachi and Islamabad, could significantly boost the industry, but delays in approvals and bureaucratic hurdles have historically slowed progress. Similarly, ambitious IT skills development programs need proper industry collaboration to ensure tangible results.

If implemented efficiently, this budget has the potential to drive Pakistan’s digital transformation. Moreover, it will improve connectivity in underserved regions, and strengthen the IT export sector. However, it remains to be seen whether these investments will translate into real growth or face setbacks similar to past initiatives. The coming months will be crucial in determining how effectively these funds are utilized to shape the future of Pakistan’s tech industry.

Also read:

PM Appoints Asfand Yar Khan as Additional Charge of Member IT at MoITT

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