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By Ariz Riaz :
Ministry of Information Technology and Telecommunication has proposed two major technology initiatives under the Public Sector Development Programme (PSDP) 2026–27, marking an ambitious drive to reshape Pakistan’s digital future.
The proposed projects include a $1 billion National AI Ecosystem Development Program (NAIEDP) and a Rs70 billion Pakistan Digital Infrastructure Connectivity Plan, both scheduled to be launched from 2026.
According to official documents, the National AI program will run from 2026 to 2031 with a total estimated cost of $1 billion (approximately Rs288 billion). For the first year, an initial allocation of $100 million (Rs28.8 billion) has been proposed. Physical and financial progress remains at zero as implementation is set to begin next fiscal year.
The AI initiative aims to establish state-of-the-art data centers in major cities to provide secure and affordable computing facilities for startups, universities, and research institutions. A core objective is to ensure sovereign data storage and processing, reducing Pakistan’s dependence on foreign digital infrastructure.
Another key feature of the program is the development of a national language-based AI system trained on local datasets. This system is expected to deliver sector-specific solutions in areas such as healthcare, agriculture, governance, and the legal system.
The plan also includes fully funded scholarships, large-scale AI training programs, and stronger collaboration between academia and industry to build a skilled workforce. Support mechanisms for startups — including seed funding, mentoring, and market access — are also part of the proposal, aimed at stimulating private investment in the AI sector.
Running alongside the AI project, the Pakistan Digital Infrastructure Connectivity Plan (2026–2030) has been proposed with an estimated cost of Rs70 billion, with Rs5 billion allocated for the first year.
This project focuses on expanding mobile broadband coverage, improving service quality, accelerating fiber-optic deployment, and supporting preparations for 5G rollout. Telecom operators will receive financial support in the form of loans for infrastructure expansion, which will be repaid under agreed conditions.
Officials say the two initiatives are designed to modernize public sector operations, enhance digital governance, strengthen energy and urban planning systems, introduce centralized digital public complaint platforms, and improve inter-departmental coordination across government institutions.
If approved, the programs would represent one of Pakistan’s largest-ever public investments in digital and artificial intelligence infrastructure.
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