Pakistan has proposed a large-scale National AI Ecosystem Development Programme with an estimated total cost of Rs283 billion, but has allocated only Rs1 billion for the upcoming fiscal year 2026–27.

According to budget documents and the APCC working paper, the project has been included as a new scheme under the Ministry of Information Technology and Telecom in the Public Sector Development Programme (PSDP). However, it remains unapproved at this stage.

The proposed Rs1 billion allocation represents just 0.35 percent of the total estimated project cost. The amount is split equally between domestic and foreign funding, with Rs500 million expected from local resources and Rs500 million from external assistance.

The AI ecosystem initiative is among the largest technology-focused proposals in the development budget and reflects the government’s long-term intent to strengthen artificial intelligence and emerging tech capabilities despite fiscal constraints.

For FY2026–27, the Ministry of IT and Telecom has proposed a development budget of Rs20 billion, meaning the AI programme alone accounts for around 5 percent of the ministry’s total development outlay.

Separately, a new project titled the Pakawaz Secure Mobile Communication Ecosystem has also been proposed, with an allocation of Rs250 million for the next fiscal year.

Officials noted that both initiatives remain subject to final approval through the federal budget process and relevant forums before implementation.