Govt’s Flagship Rs. 283 Billion AI Program Gets Just Rs. 1 Billion in New Budget

The federal government has proposed a massive National AI Ecosystem Development Program with an estimated cost of Rs. 283 billion.

It has earmarked Rs. 1 billion for the project in FY2026-27, representing just 0.35 percent of its total proposed cost.

The project has been included among new schemes proposed by the Ministry of Information Technology and Telecom in the Public Sector Development Program (PSDP) for FY2026-27. According to the APCC working paper, the AI initiative remains an unapproved project with an estimated overall cost of Rs. 283 billion.

Budget documents show that the government has proposed an initial allocation of Rs. 1 billion for the upcoming fiscal year, split equally between local funding and foreign assistance, with Rs. 500 million each coming from domestic and external sources. This means less than one percent of the project’s estimated cost has been allocated for the first year.

The proposed AI ecosystem program is among the largest technology initiatives identified in the development budget and signals the government’s intention to strengthen Pakistan’s capabilities in artificial intelligence and emerging technologies despite ongoing fiscal constraints.

The Information Technology and Telecom Division has been allocated a proposed development budget of Rs. 20 billion for FY2026-27, making the AI initiative equivalent to around 5 percent of the division’s total annual development allocation.

Another new technology-related project proposed under the ministry is the Pakawaz Secure Mobile Communication Ecosystem, which has been allocated Rs. 250 million for the next fiscal year.

The proposal forms part of the PSDP working paper presented to the Annual Plan Coordination Committee. However, the project and its funding allocations will remain subject to approval through the federal budget process and subsequent clearances from relevant forums.