The federal government has proposed an allocation of Rs. 16.29 billion for ongoing projects of the Information Technology and Telecommunication Division under the Public Sector Development Program for fiscal year 2026-27, signalling continued focus on digital infrastructure and technology-led growth.
According to budget documents, the funding is aimed at sustaining key initiatives related to innovation, digital connectivity and technology development that are already under implementation across Pakistan.
One of the largest allocations has been made for the Technology Park Development Project in Islamabad, which has been earmarked for Rs. 6.81 billion for the next financial year.
The project is considered a flagship government initiative designed to develop a modern ecosystem for technology companies, startups and research-driven enterprises.
Another major component of the proposed spending is the Digital Economy Enhancement Project, which has received Rs. 3.02 billion. The project is supported by the World Bank and is aimed at strengthening digital adoption, improving regulatory frameworks and supporting innovation across the technology sector.
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Meanwhile, the establishment of the IT Park project in Karachi has been allocated Rs. 3.75 billion. Officials say the facility is expected to play a key role in expanding Pakistan’s technology exports and attracting local and foreign investment.
The PSDP 2026-27 also includes allocations for several strategic technology initiatives. These include Rs. 1 billion for the Revamping of IT Industry programme, Rs. 524.64 million for the National Artificial Intelligence Advancement Initiative, Rs. 330 million for Cyber Security for Digital Pakistan, and Rs. 250 million for the National Semiconductor Human Resource Development Program.
Additional funding has been proposed for the Smart Islamabad Initiative and expansion of cellular services in Azad Jammu and Kashmir and Gilgit-Baltistan, as well as compliance and export enhancement programmes aimed at improving the global competitiveness of Pakistan’s IT sector.
According to official figures, the total portfolio cost of IT and telecom-related projects currently stands at Rs. 79.79 billion. Of this, Rs. 16.29 billion has been proposed for allocation in FY2026-27 to ensure continuity and timely completion of priority initiatives.
Officials say the proposed funding reflects the government’s broader strategy to accelerate digital transformation, support emerging technologies and position Pakistan as a competitive player in the regional and global technology landscape.
