Budget Cut for IT Ministry Sparks Alarm in Pakistan’s Tech Industry
In a move that has stirred unease across Pakistan’s tech sector, the federal government has decided to slash the development budget of the Ministry of Information Technology and Telecommunication by nearly half for the fiscal year 2025-26. The cut, amounting to 43 percent, underscores a stark contrast with previous assurances of robust support for the country’s digital future.
As per budget documents accessed by ProPakistani, the Ministry’s development budget is set to shrink to Rs. 13.52 billion, compared to Rs. 23.92 billion in the outgoing fiscal year. This reduction of Rs. 10.4 billion has already triggered concerns about the viability of key technology projects and initiatives.
The breakdown of the budget indicates that Rs. 3.64 billion will be sourced domestically, while Rs. 9.88 billion is projected to come from international partners and financial institutions. Analysts note that this reliance on external funding could make vital technology initiatives vulnerable to shifting geopolitical and financial landscapes.
Despite repeated government statements about positioning the IT sector as a driver of economic growth, the substantial budget cut appears to run counter to this narrative. Industry insiders warn that scaling back development spending could stifle innovation, limit digital infrastructure upgrades, and slow down the country’s journey towards becoming a digital economy.
This decision comes at a time when the global technology landscape is evolving rapidly, demanding increased investment in areas such as data centers, software development, cybersecurity, and digital literacy. Reduced budgetary support could hinder the country’s ability to keep pace with these global trends and hamper its competitiveness.
Meanwhile, officials within the Ministry of IT and Telecommunication have expressed concerns about the potential impact on ongoing programs aimed at fostering start-ups and supporting emerging technologies. They stress that this budget cut may lead to delays and, in some cases, the cancellation of projects critical for the sector’s long-term health.
Stakeholders in the private sector are urging the government to reconsider its decision, emphasizing that predictable and sustained investments are crucial for maintaining the momentum of Pakistan’s digital transformation efforts. Without them, the risk of falling behind regional peers becomes a tangible threat.
