ISLAMABAD: Pakistan’s major digital economy projects continue to receive federal development funding despite growing fiscal constraints and increasing pressure on Public Sector Development Programme (PSDP) resources, according to a presentation prepared for the Annual Plan Coordination Committee (APCC).

The inclusion of key technology initiatives in the federal development portfolio signals the government’s continued focus on digital infrastructure, innovation, and technology-led economic growth as part of its long-term development strategy.

According to the APCC presentation, several flagship projects have been retained, including IT Park Karachi, IT Park Islamabad, the Digital Economy Project, and Islamabad Technopolis.

The IT Park Karachi project, with a total estimated cost of Rs31.2 billion, carries a remaining funding requirement of Rs29.8 billion. The project received an allocation of Rs6 billion during FY2025-26 and is expected to require Rs11.5 billion in FY2026-27.

Similarly, IT Park Islamabad has a total cost of Rs23.3 billion and a remaining liability of Rs11.6 billion. The project received Rs7.4 billion under PSDP 2025-26 and is projected to require Rs6.5 billion in the next fiscal year.

The Digital Economy Project, valued at Rs17.5 billion, has a remaining funding requirement of Rs17 billion. It received Rs5.3 billion during FY2025-26 and is expected to need Rs6 billion in FY2026-27.

The presentation also lists Islamabad Technopolis, a technology and innovation initiative with a total cost of nearly Rs2 billion. The project is projected to require Rs1.543 billion during the next fiscal year.

The projects are being pursued at a time when the federal development programme faces substantial financial pressures. According to Planning Ministry data, the overall throw-forward of PSDP projects has reached Rs10.818 trillion, while ongoing projects require approximately Rs3.377 trillion in FY2026-27 against an Indicative Budget Ceiling of Rs1.126 trillion.

Despite these constraints, digital infrastructure and technology-focused initiatives remain among the government’s priority development schemes.

The presentation indicates that policymakers view digitalisation, innovation, and technology development as important drivers of economic modernisation, improved public services, and long-term competitiveness.

In addition to information technology projects, the federal development portfolio includes initiatives related to skills development, innovation, and digital transformation, reflecting continued support for knowledge-based sectors within Pakistan’s development framework.

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