Despite repeated government promises to prioritize Pakistan’s tech sector, the federal development budget for the Ministry of Information Technology and Telecommunication is likely to see a drastic cut of over 43% for the fiscal year 2025–26.
According to official budget documents, the IT Ministry’s development allocation has been decreased by Rs10.4 billion, dropping from last year’s Rs23.92 billion to Rs13.52 billion in the upcoming budget. Of the proposed amount, Rs3.64 billion will come from domestic resources, while Rs9.88 billion is expected from foreign assistance.
This significant reduction contradicts the government’s earlier claims of making the IT sector a cornerstone of economic growth and innovation.
Space missions soar while IT falls behind
In contrast to the IT budget cuts, the Space and Upper Atmosphere Research Commission (Suparco) has seen a boost, with Rs24.15 billion allocated for the space agency. Notably, over Rs18 billion is earmarked for the Pakistan Multi-Mission Communication Satellite System, reflecting a growing interest in space and satellite technology.
Additional allocations include:
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Rs600 million for Pakistan’s first manned space mission
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Rs400 million for the lunar exploration project
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Rs1.8 billion for the Deep Space Astronomical Project
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Rs1.7 billion for the Pakistan Optical Remote Sensing Satellite Project
These projects suggest an ambitious space agenda, even as the country’s digital transformation at home sees diminished investment.
Cabinet Division and SIFC also secure major funding
Meanwhile, the Cabinet Division has been allocated Rs50.33 billion, with Rs50 billion specifically set aside for parliamentary schemes under the Sustainable Development Goals (SDGs) Program.
The Special Investment Facilitation Council (SIFC), a key body tasked with attracting foreign investment, will receive Rs503.3 million this year. This figure marks a significant rise from the Rs299.3 million spent in the current year, with total project costs exceeding Rs1 billion.
Other Notable Allocations:
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Rs138.2 million for infrastructure development in Islamabad
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Rs100 million for restoring and upgrading the National Archives
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Rs100 million to improve solar systems and security at six air squadrons
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Rs650 million for constructing a Hajj Complex in Lahore
Industry experts have raised concerns over the shrinking IT budget, warning that such cuts could stall digital innovation, hamper job creation, and push Pakistan further behind in global tech competitiveness.
