ISLAMABAD: The federal government has proposed an allocation of Rs13.5 billion for ongoing IT and digital infrastructure projects in the Public Sector Development Programme (PSDP) for the fiscal year 2025-26, aiming to boost digital transformation and strengthen the country’s IT ecosystem.
According to available copy of the official documents, a total of 12 ongoing projects under the Ministry of Information Technology and Telecommunications (MoITT) have been included in the proposed development plan. These projects, overseen by various entities such as the National Information Technology Board (NITB), Special Communications Organisation (SCO), and Pakistan Software Export Board (PSEB), have a combined total cost of Rs85.7 billion. Of this, Rs54.6 billion has already been spent by June 30, 2025.
One of the largest allocations is for the “Establishment of IT Park at Karachi,” a flagship project approved by the Executive Committee of the National Economic Council (ECNEC) in April 2021. This initiative, with a total cost of Rs31.2 billion, has already utilised Rs26.5 billion. For FY2025-26, an additional Rs4 billion has been proposed to bring the project closer to completion.
Another notable initiative is the “Technology Park Development Project” in Islamabad, originally approved in 2016 with a total cost of Rs23.3 billion. By June 2025, Rs19.8 billion had been spent on the project. For the coming fiscal year, a further Rs4.9 billion has been allocated to accelerate the park’s development and operational readiness.
The government has also prioritized the “Digital Economy Enhancement Project,” which aims to modernize and digitize the country’s economic infrastructure. This project has already seen substantial progress, with Rs8.3 billion expended out of a total cost of Rs8.3 billion. However, Rs2 billion has been allocated for FY2025-26 to cover the final stages of implementation and additional enhancements.
The “Cyber Security for Digital Pakistan” initiative, designed to safeguard the nation’s digital assets, has been allocated Rs250 million for FY2025-26. The project’s total cost stands at Rs1.8 billion, with Rs1.05 billion spent as of June 2025. Similarly, the “National Semiconductor HR Development Program (NSHRDP) Phase-I,” launched to build a skilled workforce in the semiconductor industry, has been allocated Rs250 million for its inaugural year, reflecting the government’s commitment to high-tech industry development.
The government has also continued its support for digital health initiatives, as evidenced by the “One Patient One ID” project, which aims to create a unified digital health record for citizens. With a total cost of Rs200 million, the project has received Rs97.5 million for FY2025-26.
Other key projects include the “Expansion of Cellular Services in Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) Phase-IV” and “Support for IT Startups and Venture Capital.” Both initiatives are essential for promoting digital inclusivity and entrepreneurial growth in underserved regions. Each project has been allocated Rs500 million for FY2025-26, underscoring the government’s efforts to bridge the digital divide and support innovation.
The proposed allocations reflect the government’s emphasis on digital transformation, cybersecurity, and human capital development. These investments aim to position Pakistan as a competitive player in the global IT market and provide a solid foundation for sustained economic growth. The proposed budget will be presented for parliamentary approval during the upcoming budget session for FY2025-26.
