Govt allocates over Rs 19.58 bln for IT division in PSDP

ISLAMABAD, Jun 12 (APP): The federal government has allocated about Rs 19.58 bln under the Public Sector Development Programme (PSDP) 2026-27 for information technology and digital transformation projects, reflecting its focus on artificial intelligence, cybersecurity, digital infrastructure and technology-led economic growth.

According to budget documents issued on Friday, Rs 16,294.936 million has been set aside for ongoing schemes, while Rs. 185.064 and Rs.3,000 million had been allocated for new initiatives.

Among major ongoing projects, Rs 6,814.936 million has been earmarked for the Technology Park Development Project (TDP) Islamabad under the Ministry of IT and Telecom. Another Rs 3,745.486 million has been allocated for the establishment of an IT Park in Karachi by the Pakistan Software Export Board (PSEB), while Rs 3,016 million has been provided for the Digital Economy Enhancement Project funded by the World Bank.

The government has also allocated Rs 1,000 million for the revamping of the IT industry. The National AI Advancement Initiative has received Rs 524.64 million to support ongoing artificial intelligence development efforts.

For cybersecurity, Rs 330 million has been set aside for the Cyber Security for Digital Pakistan project. Meanwhile, Rs 298.88 million has been allocated for the expansion of cellular services in Azad Jammu and Kashmir and Gilgit-Baltistan under Phase-IV.

The Smart Islamabad Initiative and the National Semiconductor Human Resource Development Programme (Phase-I) have been allocated Rs 250 million each. In addition, Rs 65 million has been reserved for the GDPR-driven ISO compliance and IT exports project to improve the export readiness of local tech firms.

Separately, Rs 3,000 million has been allocated under the Prime Minister’s Youth Programme for IT startups, specialised training and venture capital support to promote freelancing, entrepreneurship and innovation among young people.

Among new schemes, the National AI Ecosystem Development Programme has received Rs 185.06 million to support broader adoption of artificial intelligence in public sector institutions.

The government has also allocated Rs 100 million for the Pakawaz Secure Mobile Communication Ecosystem, a project aimed at developing a secure and encrypted mobile communication system for sensitive official communications.

These allocations highlight the government’s continued push for digital transformation, stronger cybersecurity, improved technology infrastructure and innovation-led economic development.