IT Ministry Seeks Rs71.84 Billion Development Budget For FY2026-27
Pakistan’s Ministry of Information Technology and Telecommunication has proposed a development budget of Rs71.84 billion for the upcoming fiscal year, reflecting the government’s growing focus on digital transformation, technology infrastructure, software exports and innovation-led economic growth.
According to budget documents for FY2026-27, the proposed allocation represents a substantial increase in development spending for the IT sector and is aimed at accelerating projects that support Pakistan’s digital economy, telecommunications network, startup ecosystem and advanced technology capabilities.
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The proposed Public Sector Development Programme (PSDP) includes a total of 20 projects, comprising 12 ongoing projects and eight new initiatives. Of the overall allocation sought by the ministry, Rs32.13 billion has been earmarked for ongoing schemes, while Rs39.71 billion has been proposed for new projects.
The ministry has also requested Rs37.79 billion specifically for five major flagship initiatives that are expected to play a key role in expanding the country’s digital infrastructure and technological competitiveness.
Focus On Software Exports And Digital Economy
A major portion of the proposed budget has been allocated to projects being implemented through the Pakistan Software Export Board (PSEB), highlighting the government’s intention to strengthen software exports and increase Pakistan’s presence in global technology markets.
Budget documents show that Rs24.39 billion has been proposed for seven ongoing PSEB projects. These initiatives are aimed at supporting the growth of the IT industry, improving export capacity, creating employment opportunities and enhancing Pakistan’s reputation as a technology outsourcing destination.
The continued investment in software development and exports aligns with national efforts to boost foreign exchange earnings and diversify economic growth through high-value technology services.
Islamabad IT Park Remains Top Priority
Among the flagship projects, the Islamabad IT Park continues to receive significant attention from policymakers.
The project, which is currently reported to be 72 percent complete, has been allocated a proposed Rs6.73 billion for the next fiscal year. The funding is expected to help accelerate construction and operational readiness of the facility, which is envisioned as a major hub for technology companies, startups and innovation-driven businesses.
The government also plans to continue work on the Karachi IT Park project, with Rs115 million proposed for its development during FY2026-27.
Both projects are expected to contribute to the creation of modern technology infrastructure capable of supporting the country’s growing IT sector and attracting investment from local and international companies.
Startup Ecosystem To Receive Major Support
The proposed budget places considerable emphasis on entrepreneurship and innovation.
To strengthen Pakistan’s startup ecosystem, the ministry has proposed Rs1.802 billion for Venture Ecosystem projects designed to support technology startups, innovation programmes and emerging businesses.
Officials believe the allocation will help provide resources, mentorship opportunities and funding support for entrepreneurs working in areas such as software development, fintech, artificial intelligence and digital services.
The initiative forms part of broader efforts to encourage innovation-led economic growth and create employment opportunities for the country’s rapidly expanding youth population.
Investment In Semiconductor Skills Development
Recognising the increasing global importance of semiconductor technologies, the ministry has proposed more than Rs1 billion for the National Semiconductor Human Resource Development Program.
The programme aims to develop specialised technical skills and expertise within Pakistan’s workforce, enabling professionals to participate in the fast-growing semiconductor industry.
Industry experts view semiconductor development as a strategic area for future economic growth, particularly as global demand for advanced chips and electronic components continues to rise.
The programme is expected to focus on training, research, academic partnerships and workforce development to build local capabilities in this critical technology sector.
Expanding Telecom Services In Remote Areas
Improving digital connectivity across underserved regions remains another major objective of the proposed budget.
The Special Communication Organization (SCO) has sought Rs2.67 billion for four development projects. Among these is a new Rs2.50 billion initiative aimed at expanding telecommunications infrastructure in remote and underserved areas of the country.
The project is expected to improve internet access, mobile communication services and digital connectivity in regions where telecommunications infrastructure remains limited.
Officials believe enhanced connectivity will support economic development, education, healthcare services and digital inclusion in remote communities.
NITB, Ignite And Cybersecurity Projects Included
Several other technology-focused institutions have also requested funding under the proposed development programme.
The National Information Technology Board (NITB) has sought Rs743 million for three projects aimed at strengthening digital governance and public-sector technology systems.
Ignite, the government-backed technology innovation organisation, has proposed Rs3 billion for a new project focused on innovation, entrepreneurship and emerging technologies.
Meanwhile, the National Telecommunication and Information Security Board (NTISB) has requested Rs3.24 billion for projects related to telecommunications and information security, highlighting the growing importance of cybersecurity and digital resilience in an increasingly connected world.
Digital Transformation Remains Key Government Priority
The proposed IT development budget signals the government’s intention to accelerate Pakistan’s transition toward a digital economy. Through investments in technology parks, software exports, startup development, telecommunications infrastructure, semiconductor skills and cybersecurity initiatives, policymakers aim to position the country for long-term growth in the global digital landscape.
If approved in the federal budget, the Rs71.84 billion allocation would represent one of the most significant investments in Pakistan’s technology sector to date, supporting efforts to create jobs, attract investment, expand digital services and enhance the country’s competitiveness in emerging technology industries.
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