ISLAMABAD: Despite rosy promises, the federal development budget for the Ministry of Information Technology and Telecommunication is set to face a sharp 43% cut in the fiscal year 2025–26.
According to official budget documents, the ministry’s development allocation will shrink from Rs 23.92 billion last year to just Rs13.52 billion. Of this, Rs 3.64 billion will be sourced domestically, while the remaining Rs 9.88 billion is expected through foreign aid.
The drastic reduction runs counter to the government’s earlier commitments to position IT as a pillar of economic growth and innovation.
Space Sector Gains While IT Takes a Hit
While the IT sector sees its funding slashed, the Space and Upper Atmosphere Research Commission (Suparco) is receiving a notable boost, with Rs 24.15 billion allocated for space-related initiatives.
Key allocations under Suparco include:
- Rs18 billion for the Pakistan Multi-Mission Communication Satellite System
- Rs600 million for Pakistan’s first manned space mission
- Rs400 million for a lunar exploration project
- Rs1.8 billion for the Deep Space Astronomical Project
- Rs1.7 billion for the Pakistan Optical Remote Sensing Satellite Project
These figures reflect Pakistan’s growing ambitions in space and satellite technology — even as the domestic digital transformation agenda faces reduced investment.
Cabinet Division and SIFC See Funding Boosts
The Cabinet Division will receive Rs50.33 billion, of which Rs50 billion is earmarked for parliamentary schemes under the Sustainable Development Goals (SDGs) Program.
The Special Investment Facilitation Council (SIFC) — responsible for streamlining foreign investment — will get Rs503.3 million, a sharp increase from Rs299.3 million last year. The total cost of SIFC-related projects now exceeds Rs1 billion.
Other Noteworthy Allocations:
- Rs138.2 million for infrastructure development in Islamabad
- Rs100 million for restoration and upgrading of the National Archives
- Rs100 million to improve solar power and security at six air squadrons
- Rs650 million for building a Hajj Complex in Lahore
The contrasting funding priorities suggest the government is leaning toward strategic and high-visibility projects, even as it scales back support for the IT sector — a move that could hamper long-term digital and economic growth.
