The Ministry of Information Technology and Telecommunication has proposed two major technology initiatives under the Public Sector Development Programme (PSDP) 2026–27, including a $1 billion National AI Ecosystem Development Program (NAIEDP) and a Rs70 billion Pakistan Digital Infrastructure Connectivity Plan, signaling an ambitious five-year push to transform the country’s digital landscape.
The National AI Ecosystem Development Program is planned for 2026–2031 with a total proposed allocation of $1 billion, equivalent to approximately Rs288 billion. An initial allocation of $100 million (Rs28.8 billion) has been proposed for the fiscal year 2026–27. Officials confirmed that both physical and financial progress currently stand at zero, with implementation expected to begin next year.
The AI initiative aims to establish advanced data centres in major cities to provide secure and affordable computing infrastructure for startups, universities and research institutions. A key objective is to ensure sovereign storage and processing of national data, reducing dependence on foreign digital infrastructure.
The program also includes the development of a national language AI system trained on local datasets to support sector-specific applications in healthcare, agriculture and the legal sector. Fully funded scholarships, large-scale training initiatives and enhanced collaboration between academia and industry are proposed to build a skilled artificial intelligence workforce.
To foster innovation, the plan outlines early- and growth-stage funding for startups, along with mentoring and business development support to attract private investment and expand market access.
Running parallel to the AI initiative, the Pakistan Digital Infrastructure Connectivity Plan (2026–2030) has been proposed at an estimated cost of Rs70 billion, with Rs5 billion allocated for 2026–27.
The connectivity program focuses on expanding mobile broadband coverage, accelerating fibre deployment, improving service quality and supporting the acquisition of 5G spectrum. Telecom operators are expected to utilize the funds for broadband expansion and fibre rollout, with loans to be repaid under agreed terms.
Officials said the combined initiatives aim to modernize public sector operations, strengthen digital governance, improve energy-sector planning, introduce centralized digital public complaint systems and enhance coordination among government departments.
If approved, the proposals would mark one of the largest state-led technology investments in Pakistan’s history, positioning artificial intelligence and digital infrastructure at the core of the country’s development strategy.
