Govt Sets Aside Rs. 16.29 Billion for IT Parks, AI and Startups in PSDP

The government has proposed an allocation of Rs. 16.29 billion for ongoing projects of the Information Technology and Telecommunication Division under the Public Sector Development Program (PSDP) 2026-27.

The funding is aimed at sustaining major digital infrastructure, innovation, and technology development initiatives that are already under implementation across the country.

Among the largest recipients is the Technology Park Development Project in Islamabad, which has been allocated Rs. 6.81 billion for the next financial year. The project remains one of the government’s flagship investments focused on creating a modern ecosystem for technology companies and startups.

The Digital Economy Enhancement Project, supported by the World Bank, has been allocated Rs. 3.02 billion. Meanwhile, the Establishment of IT Park at Karachi project has received Rs 3.75 billion. Both initiatives are expected to strengthen Pakistan’s digital economy and create more opportunities for technology businesses.

The PSDP also includes allocations for several strategic sectors. These include Rs1 billion for the Revamping of IT Industry initiative, Rs. 524.64 million for the National Artificial Intelligence Advancement Initiative, Rs. 330 million for Cyber Security for Digital Pakistan, and Rs. 250 million for the National Semiconductor Human Resource Development Program.

Additional funding has also been proposed for the Smart Islamabad Initiative, the expansion of cellular services in Azad Jammu and Kashmir and Gilgit-Baltistan, as well as compliance and export enhancement programs.

Collectively, these projects represent a total portfolio cost of Rs. 79.79 billion, with a proposed allocation of Rs. 16.29 billion for FY2026-27.