Tech Sector in Jeopardy as Govt Decides to Cut IT Ministry’s Development Budget By Nearly Half

The federal government has decided to slash the development budget of the Ministry of Information Technology and Telecommunication by 43 percent for the fiscal year 2025-26, despite earlier claims of prioritizing the IT sector. According to budget documents seen by ProPakistani, the proposed development allocation for the IT Ministry stands at Rs. 13.52 billion, down from Rs. 23.92 billion in the previous fiscal year, reflecting a reduction of Rs. 10.4 billion. Out of the proposed allocation, Rs. 3.64 billion will be funded through domestic resources, while the remaining Rs. 9.88 billion is expected to be sourced from external funding. The significant cut contradicts the government’s earlier statements about promoting the IT sector as a key driver of economic growth.