Despite repeated assurances by the government to prioritize the growth of Pakistan’s technology sector, the federal development budget for the Ministry of Information Technology and Telecommunication is expected to face a steep reduction of over 43% in the fiscal year 2025–26.
As per official budget documents, the ministry’s development budget has been slashed by Rs10.4 billion — falling from Rs23.92 billion in the previous year to Rs13.52 billion this year. Of the total proposed allocation, Rs3.64 billion is expected from domestic sources, while Rs9.88 billion will come through foreign assistance.
Read more: Govt Plans Rs17.68 Trillion Budget With Focus on Austerity
This sharp cutback appears to contradict the government’s earlier declarations of transforming the IT sector into a key driver of economic development and technological innovation.
Investment in Space Surges While IT Suffers
Interestingly, while the IT budget sees a decline, the Space and Upper Atmosphere Research Commission (Suparco) is witnessing a substantial boost. A total of Rs24.15 billion has been earmarked for Suparco, including more than Rs18 billion for the Pakistan Multi-Mission Communication Satellite System — indicating a strong focus on space and satellite development.
Additional space-related projects include:
- Rs600 million for Pakistan’s inaugural manned space mission
- Rs400 million for a lunar exploration initiative
- Rs1.8 billion for the Deep Space Astronomical Project
- Rs1.7 billion for the Pakistan Optical Remote Sensing Satellite Project
These allocations suggest an ambitious push in space exploration, even as domestic digital growth experiences budgetary setbacks.
Cabinet Division, SIFC Receive Generous Funds
The Cabinet Division is set to receive Rs50.33 billion, with Rs50 billion designated specifically for parliamentary projects under the Sustainable Development Goals (SDGs) Program.
Meanwhile, the Special Investment Facilitation Council (SIFC) — which is tasked with promoting foreign investments — will get Rs503.3 million this year, a notable increase from Rs299.3 million in the previous fiscal cycle. The total cost of SIFC-related projects has now crossed Rs1 billion.
Other Key Budget Allocations Include:
- Rs138.2 million for infrastructure upgrades in Islamabad
- Rs100 million for restoration and modernization of the National Archives
- Rs100 million to enhance solar power and security at six air squadrons
- Rs650 million for the construction of a Hajj Complex in Lahore
Industry analysts have voiced concern over the drastic reduction in the IT ministry’s funding. They warn that such cuts may hinder technological advancement, delay job opportunities, and weaken Pakistan’s standing in the global tech arena.
