Rs. 8.6 Billion Released for IT Ministry’s Development Projects

The federal government has released Rs. 8.6 billion for the Ministry of Information Technology and Telecommunication (MoITT) under the Public Sector Development Programme (PSDP) during the first quarter of the fiscal year 2025-26, according to official documents.

This disbursement accounts for 28 percent of the total Rs. 31 billion approved for the IT Ministry’s development projects in the current budget cycle. Officials confirmed that the released amount has already been fully utilized across several major projects aimed at boosting Pakistan’s digital economy and infrastructure.

Islamabad IT Park Nearing Completion

The IT Ministry, in its written reply to the National Assembly Standing Committee on IT and Telecom, revealed that over 80 percent of the construction work on the much-anticipated Islamabad IT Park has been completed.

The project, which has received Rs. 7 billion in allocations and is being financed through a soft loan from a Korean bank, is expected to be fully functional by the end of September 2025, in line with directives from the Prime Minister.

Karachi IT Park Development

Meanwhile, the government has also allocated Rs. 15 billion for the development of the Karachi IT Park, another flagship project of the Ministry.

Unlike Islamabad’s facility, the Karachi project is still in the planning and revision stage, with authorities finalizing updated designs and construction models to ensure it meets international standards. The Standing Committee was assured that groundwork is being expedited, and once launched, the Karachi IT Park will provide state-of-the-art facilities for IT firms and freelancers, further positioning Pakistan as a competitive player in the global outsourcing market.

The IT Ministry emphasized that these IT parks are part of a long-term strategy to enhance Pakistan’s digital infrastructure, support innovation, and strengthen the IT exports sector. By providing incubation centers, high-speed connectivity, co-working spaces, and training hubs, the government hopes to enable youth-led entrepreneurship and reduce reliance on imports by creating a self-sustained digital economy.

The projects also align with the Prime Minister’s Digital Pakistan vision, which focuses on:

• Expanding broadband and 5G services nationwide

• Establishing IT parks in major cities

• Encouraging IT startups and freelancers

• Enhancing export revenues through software and IT-enabled services

• Building partnerships with international technology firms

The Standing Committee appreciated the Ministry’s briefing and recommended further outreach at the district level. Specifically, the committee directed that Ignite — the National Technology Fund — expand its training, incubation, and entrepreneurial programs into educational institutions across districts.

Economic and Employment Impact

Pakistan’s IT sector has become one of the fastest-growing industries, contributing significantly to foreign exchange earnings. In the fiscal year 2024-25, IT and IT-enabled services (ITeS) exports crossed $3.2 billion, and policymakers expect this figure to rise sharply with the completion of the Islamabad and Karachi IT Parks.

The Islamabad facility alone is projected to:

• House over 120 IT companies and startups

• Generate 6,000 direct jobs and thousands more indirectly

• Attract foreign investors through joint ventures

• Contribute significantly to IT exports over the next five years

Officials believe that the Karachi IT Park will replicate this success on an even larger scale, given the city’s status as the commercial and financial hub of Pakistan.

The release of Rs. 8.6 billion for the IT Ministry’s projects reflects the government’s strong commitment to strengthening Pakistan’s digital economy under the PSDP framework. With the Islamabad IT Park nearing completion and the Karachi IT Park in development, Pakistan is on track to enhance its IT exports, create jobs, and establish a modern technology ecosystem.