Official budget documents reveal that the IT Ministry’s development allocation has been slashed by Rs10.4 billion, reducing it from Rs23.92 billion last year to Rs13.52 billion in the upcoming financial year. Of this amount, Rs3.64 billion will be funded domestically, while the remaining Rs9.88 billion is expected to come from foreign aid.
This sharp reduction stands in stark contrast to the government’s earlier pledges to position the IT sector as a driving force behind economic growth and innovation.
Space Sector Soars While IT Budget Shrinks
While IT funding shrinks, Pakistan s space program is gaining momentum. The Space and Upper Atmosphere Research Commission (Suparco) has received a notable boost, with a total allocation of Rs24.15 billion. A significant portion — over Rs18 billion — is dedicated to the Pakistan Multi-Mission Communication Satellite System, underscoring a renewed focus on satellite and space technologies.
Other key space-related allocations include:
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 ambitious projects indicate a strong push toward space exploration, even as domestic digital development sees a decline in investment.
Cabinet Division and SIFC See Funding Rise
In contrast to the IT sector’s cuts, the Cabinet Division has been allocated Rs50.33 billion, including Rs50 billion specifically for parliamentary schemes under the Sustainable Development Goals (SDGs) Program.
The Special Investment Facilitation Council (SIFC), responsible for attracting foreign investment, will receive Rs503.3 million this year — a notable jump from Rs299.3 million last year. The total cost of its development project exceeds Rs1 billion.
Other Significant Allocations Include:
Rs138.2 million for infrastructure upgrades in Islamabad
Rs100 million for the restoration and improvement of the National Archives
Rs100 million to enhance solar and security systems at six air squadrons
Rs650 million for the construction of a Hajj Complex in Lahore
Industry Reaction
Experts in the tech industry have expressed concern over the shrinking IT budget, warning that reduced investment could stall digital innovation, limit job creation, and further weaken Pakistan’s position in the global tech arena. Many fear that this trend sends mixed signals to potential investors and contradicts the government’s narrative of a “Digital Pakistan.”
