Big Digital Push: Pakistan Sets Aside Rs. 16.29 Billion for AI IT Parks and Startups

Pakistan is preparing to deepen its push toward a digital future as the federal government proposes a Rs. 16.29 billion allocation under the Public Sector Development Program (PSDP) 2026-27 for ongoing initiatives of the Information Technology and Telecommunication Division. This major funding reflects a strategic commitment to accelerating digital transformation, expanding innovation capacity, and strengthening technology-driven economic growth across the country. According to official budget documents, the proposed investment will be directed toward enhancing digital infrastructure, scaling up tech ecosystems, and enabling a more connected and innovation-friendly environment for businesses and entrepreneurs. A significant share has been reserved for flagship infrastructure projects, including Rs. 6.81 billion for the Technology Park Development Project in Islamabad and Rs. 3.75 billion for the establishment of an IT Park in Karachi, both expected to serve as hubs for startups, IT firms, and global investors. Additionally, Rs. 3.02 billion will support the Digital Economy Enhancement Project, backed by the World Bank, aimed at boosting digital services and adoption. Other allocations include AI advancement, cybersecurity strengthening, semiconductor skill development, and initiatives for smart governance and regional connectivity. With a total project portfolio of Rs. 79.79 billion, this funding marks a decisive step toward building a modern, competitive, and innovation-led digital economy for Pakistan’s future.