The federal government has announced a substantial 43 percent cut in the development budget for the Ministry of Information Technology and Telecommunication in the fiscal year 2025-26, sparking widespread concern within Pakistan’s fast-growing tech sector.
Official budget figures reviewed by ProPakistani reveal that the development allocation for the IT Ministry will drop to Rs. 13.52 billion from Rs. 23.92 billion in the current fiscal year. This translates to a budgetary reduction of Rs. 10.4 billion, raising alarms about the future of key technology initiatives.
Of the Rs. 13.52 billion allocated, Rs. 3.64 billion will be generated domestically, while Rs. 9.88 billion is anticipated from external funding sources. Analysts argue that heavy reliance on foreign funds could further complicate the rollout of important IT projects, especially those that require consistent and predictable financing.
The decision sharply contradicts the government’s earlier promises to elevate the IT sector as a cornerstone of economic progress and job creation. Technology leaders have expressed disappointment, cautioning that the move could derail efforts to enhance digital infrastructure, support tech start-ups, and promote innovation.
In recent years, the IT sector has been heralded as a game-changer for Pakistan’s economic development. It has driven export growth and created employment opportunities for thousands. Yet, this budget cut threatens to stall that momentum, leaving emerging businesses and entrepreneurs in a state of uncertainty.
Officials within the Ministry of IT are reportedly voicing frustration over the reduction, noting that it could delay ongoing digital projects and hamper new initiatives aimed at strengthening data security, improving digital literacy, and fostering software development.
Industry associations have called for an immediate review of the budget cuts, stressing that the country cannot afford to underinvest in technology if it hopes to remain competitive in the region and beyond. Experts caution that failing to align budgetary priorities with digital ambitions could widen the gap between Pakistan and its regional competitors in the race for technological advancement.
The decision has reignited discussions about the importance of a consistent and forward-looking policy approach to the IT sector, underscoring the need for genuine commitment beyond rhetoric.
