Pakistan Budget 2025-26: Major Boost for ICT Sector with Ongoing and New Projects

The Government of Pakistan has announced the Federal Budget 2025-26, putting a strong focus on the ICT sector. The aim is to drive economic growth, empower youth, and build a strong digital economy.

Pakistan Budget 2025-26: Major Boost for ICT Sector with Ongoing and New Projects

For the new fiscal year, the government has to allocate Rs. 29,914 million for ICT-related projects. These funds will be used for improving digital infrastructure, supporting startups, enhancing skills, and boosting connectivity across the country.

Key Focus Areas of Budget 2025-26

The 2025-26 budget outlines several major goals for the IT and telecom sectors:

• Establishment of IT Startups and Tech Ventures
• Increase in freelance opportunities and quantum employment
• Remote access to IT resources across rural and urban regions
• Development of AI and GB infrastructure
• Local manufacturing of IT equipment
• Training and upskilling youth in digital technologies
• Market-oriented job creation in ICT

These steps aim to support job creation, encourage innovation, and attract both local and international investments.

PSDP Allocation for FY 2025–26 (ICT Sector)

Prime Minister’s Initiative: Empowering IT Startups and Skills

A flagship project for 2025–26 includes Rs. 5,000 million under the Prime Minister’s Initiative for IT Startups, Specialised IT Training, and Venture Capital.

Key Components:

• Pakistan Startup Fund: Reducing investor risk, encouraging equity-free funding in sectors such as fintech, AI, and machine learning.
• Bridge Start Pakistan: A global showcase platform for local startups, enhancing market access and job creation.
• Knowledge Exchange: Strengthening innovation ecosystems through international partnerships.

Ongoing and Previous Year Projects (2024-25)

In the previous fiscal year 2024-25, the government had already laid the foundation for digital transformation. A total of Rs. 52,189 million was allocated across 45 ICT-related projects. The Ministry of IT and Telecom alone had 21 active projects with a budget of Rs. 25,920 million.

Here are some key projects from the previous year that are still ongoing:

1. Pakistan Multi-Mission Communication Satellite (PakSAT MM-1):
   Launched in May 2024, PakSAT MM-1 aims to improve broadband access, support e-learning, and enable modern broadcasting services. It is a major step toward strengthening Pakistan’s space-based digital services.
2. Prime Minister’s Initiative for Startups and Tech Skills (Rs. 1,000 million):
   This included the Pakistan Startup Fund, Bridge Start Pakistan, and Knowledge Exchange. These programs help local startups get global visibility and secure funding from international investors.
3. National Cyber Emergency Response Team (NCERT):
   Launched under the “Cyber Security for Digital Pakistan” project, NCERT is actively working to protect Pakistan’s digital assets. It ensures safe use of online platforms and supports the country’s digital growth under SDG 8 (Decent Work and Economic Growth).

Moving Toward a Digital Future

Pakistan produces over 25,000 IT graduates every year. With government-backed incubation centres, technology parks, and skills programs, the country is building a solid base for the digital economy.

The budget for 2025-26 shows a clear vision: to create a secure, inclusive, and innovation-led digital Pakistan. With the support of the Ministry of IT and Telecom and strategic partnerships between government, academia, and industry, Pakistan is on the path to becoming a tech-driven nation.

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