IT & Telecom projects likely to get Rs20bn in budget FY2026-27

ISLAMABAD: The Federal Government has proposed an allocation of Rs20 billion, including Rs8. 24 billion in local funding and Rs11. 76 billion in foreign assistance, for 13 development projects of the Information Technology and Telecommunication Division in the budget for the fiscal year 2026–27. According to budget documents available with this correspondent, the government has proposed an allocation of Rs18. 75 billion for 11 ongoing development projects during the fiscal year 2026–27, including Rs7. 488 billion in local funding and Rs11. 26 billion in foreign assistance. For two new schemes, the government has proposed a total allocation of Rs1. 25 billion comprising Rs750 million in local funding and Rs500 million in foreign assistance for the fiscal year 2026–27. Under the new projects, Rs1 billion has been earmarked for the National AI Ecosystem Development Programme, including Rs500 million in local funding and Rs500 million in foreign assistance. Another Rs250 million has been allocated for the PakAwaz Secure Mobile Communication Ecosystem project. For the 11 ongoing development projects, the government has proposed Rs5. 85 billion, including Rs150 million in local funding and Rs5. 7 billion in foreign assistance, for the Technology Park Development Project (TDP), Islamabad, under the Ministry of Information Technology and Telecommunication (MoITT). An allocation of Rs3. 016 billion, funded by the World Bank, has been proposed for the Digital Economy Enhancement Project, while Rs500 million has been earmarked for the Smart Islamabad Initiative of the National Information Technology Board (NITB). The budget also includes Rs1 billion for the Prime Minister’s initiatives supporting IT startups, specialised IT training and venture capital, and Rs2 billion for the Revamping of IT Industry project. In addition, Rs500 million has been allocated for the National Semiconductor HR Development Programme (NSHRDP) Phase-I and Rs1. 25 billion for the Cyber Security for Digital Pakistan initiative. Furthermore, the government has proposed Rs524. 64 million for the National Artificial Intelligence Advancement Initiative under MoITT. An allocation of Rs3. 75 billion, including Rs1. 2 billion in local funding and Rs2. 545 billion in foreign assistance, has been earmarked for the establishment of an IT Park in Karachi under the Pakistan Software Export Board (PSEB). The budget also proposes Rs298. 875 million for the Expansion of Cellular Services in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) Phase-IV project being executed by the Special Communications Organisation (SCO), and Rs65 million for the GDPR-Driven ISO Compliance and IT Exports Enhancement Programme under PSEB. Copyright Business Recorder, 2026

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