By Abdul Ghani

Pakistan is moving ahead with a Rs37.13 billion Pakistan Space Center project aimed at strengthening national capabilities in space science, technology and research, while supporting innovation, skills development and the growth of the country's space sector.

According to the Ministry of Planning, Development and Special Initiatives' Monthly Development Update – September 2026, available with Wealth Pakistan, the revised Pakistan Space Center (PSC) project, sponsored by the Space and Upper Atmosphere Research Commission (SUPARCO), was recommended by the Central Development Working Party (CDWP) to the Executive Committee of the National Economic Council (ECNEC).

The project has an estimated cost of Rs37.130 billion and is intended to establish a state-of-the-art space centre to strengthen Pakistan's capabilities in space science, technology and research.

The Planning Ministry said the project would also support innovation, skills development and the expansion of Pakistan's space sector, placing human-resource development alongside physical and technological infrastructure among its objectives.

The project was among the major development proposals considered by the CDWP during August 2026.

Two CDWP meetings were held during the month to review proposals submitted by federal ministries and provincial governments. The forum considered 19 agenda items, comprising 14 projects, four position papers and one policy paper proposal.

Of these, seven projects worth Rs25.4 billion and two position papers were approved by the CDWP. Five projects costing Rs283.9 billion and one position paper were recommended to ECNEC, while two projects, one policy paper and one position paper were deferred.

The Pakistan Space Center accounted for around 13% of the combined Rs283.9 billion cost of the five projects recommended to ECNEC during August.

Its recommendation comes as the government seeks to direct development expenditure towards projects that strengthen productive capacity, technological capability and long-term economic development.

The federal Public Sector Development Programme (PSDP) for FY2026-27 has been set at Rs1 trillion, including Rs255 billion as foreign-loan rupee cover. The government says development resources are being prioritised for fast-moving and high-impact ongoing projects amid fiscal constraints.

Science and technology also featured elsewhere in the August development portfolio.

The CDWP approved the establishment of a National Defence University Faculty of Contemporary Studies campus at the Defence Complex Islamabad at a cost of Rs2.753 billion. The Planning Ministry said the project is intended to strengthen higher education, research and strategic studies, enhance professional capacity and support national security and defence policy formulation.

Higher education projects approved during the month also include investment in technology-related human capital.

Four higher education projects with a combined cost of Rs13.6 billion were approved to strengthen academic infrastructure, teaching and research facilities and the quality of higher education. The ministry said these schemes also focus on developing skilled human resources in technology, management and veterinary sciences.

The government's broader development outlook similarly identifies technology as one of the areas expected to support future growth.

According to the report, development efforts going forward will focus on improving the efficiency and impact of public investment and accelerating priority projects. Greater emphasis will be placed on private investment, exports, productivity, technology, human capital and climate resilience to support broad-based growth.

The Space Center proposal also comes as the government introduces tighter criteria for selecting development projects.

The Planning Ministry has finalised the Public Investment Procedure and Parameters (PIPP), a scorecard-based mechanism under which projects are to be assessed against national priorities, economic viability, technical readiness, climate resilience, social impact, sustainability, private-sector participation and measurable results.

The new framework is intended to shift the PSDP from a demand-driven project list towards a priority-driven investment portfolio, with emphasis on fewer, better-prepared and investment-ready projects capable of delivering greater economic and social returns.

For the Pakistan Space Center, the immediate development milestone is its recommendation by the CDWP to ECNEC. The report does not state that ECNEC has already approved the project, making the Rs37.13 billion proposal a recommended project rather than a finally approved scheme.

Credit: INP-WealthPk