ISLAMABAD

The federal government has proposed allocating Rs19.58 billion for Information Technology and Telecommunications projects in the FY2026-27 budget, with a strong focus on digital infrastructure, artificial intelligence, cybersecurity, startup development, and emerging technologies.

Budget documents reveal that foreign funding commitments for IT Division projects have reached Rs337.59 billion, reflecting growing international support for Pakistan’s digital transformation agenda.

For ongoing development projects, the government has proposed an allocation of Rs16.29 billion, including major investments in flagship initiatives such as the Islamabad Technology Park and Karachi IT Park, both of which are expected to play a key role in fostering innovation, technology exports, and entrepreneurship.

The Islamabad Technology Park is set to receive more than Rs6.81 billion, while over Rs3.74 billion has been proposed for the Karachi IT Park project. Meanwhile, the Digital Economy Enhancement Project has been earmarked over Rs3.01 billion to accelerate the adoption of digital technologies and strengthen Pakistan’s digital ecosystem.

The government has also proposed Rs3 billion under the Prime Minister’s Youth Programme to support IT startups and technology training initiatives, aimed at enhancing digital skills, entrepreneurship, and employment opportunities for young Pakistanis.

In a significant move toward emerging technologies, the Public Sector Development Programme (PSDP) 2026-27 includes funding for a new National AI Ecosystem Development Programme, with more than Rs185 million proposed for the initiative. The project has been included among the government’s new development schemes to support artificial intelligence research, innovation, and talent development.

Additional funding has also been proposed for the Pak Awaaz Secure Mobile Communication Ecosystem project, while more than Rs1 billion has collectively been earmarked for national initiatives focused on artificial intelligence, cybersecurity, and semiconductor workforce development.

Analysts say the proposed allocations demonstrate the government’s intention to position Pakistan as a regional technology hub by investing in next-generation digital infrastructure, innovation ecosystems, and future-ready talent.