By Ayesha Saba

Pakistan's digital transformation initiatives continue to receive federal development support despite mounting fiscal pressures and growing competition for limited Public Sector Development Programme (PSDP) resources.

According to a presentation prepared for the Annual Plan Coordination Committee (APCC), several technology-focused projects have been retained in the federal development portfolio, reflecting the government's emphasis on digital infrastructure, innovation and technology-led economic growth.

The document identifies a number of key projects in the information technology and digital economy sectors, including the IT Park Karachi, IT Park Islamabad, Digital Economy Project and Islamabad Technopolis.

Among them, the IT Park Karachi project carries a total cost of Rs31.2 billion and a throw-forward of Rs29.8 billion. The project received an allocation of Rs6 billion during FY2025-26 and is projected to require Rs11.5 billion in FY2026-27.

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

The Digital Economy Project is another major initiative within the federal development portfolio. The scheme has a total cost of Rs17.5 billion and a throw-forward of Rs17 billion. It received Rs5.3 billion during FY2025-26 and is expected to require Rs6 billion in FY2026-27.

The presentation also includes Islamabad Technopolis, which aims to support technology-driven development and innovation. The project has a total cost of nearly Rs2 billion and is projected to require Rs1.543 billion next year.

According to the document, these projects are being pursued at a time when the federal development portfolio faces significant financial constraints. 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 pressures, technology-related schemes continue to feature among the government's priority development initiatives.

The presentation suggests that digital infrastructure projects are being viewed as important components of broader economic modernisation efforts aimed at enhancing innovation capacity, improving digital services and strengthening the country's technology ecosystem.

In addition to information technology projects, the federal development portfolio also includes initiatives related to skills development, innovation and digital transformation, highlighting the government's continued focus on knowledge-based sectors.

The Planning Ministry's data indicate that while infrastructure and water-sector projects account for the largest share of development spending, technology-focused initiatives remain part of the federal development agenda despite increasing competition for fiscal resources.

The inclusion of these projects in future development planning reflects the strategic importance attached to digitalisation and technology-led growth within Pakistan's long-term development framework.

Credit: INP-WealthPk