The federal government has proposed a big National AI Ecosystem Development Program costing Rs. 283 billion. However, in the new budget for 2026-27, it has allocated only Rs. 1 billion for this ambitious project. This is just 0.35 percent of the total estimated cost.
The project is part of new schemes under the Ministry of Information Technology and Telecom in the Public Sector Development Programme (PSDP). According to budget documents, the Rs. 1 billion will be split equally — Rs. 500 million from local funds and Rs. 500 million from foreign assistance.
This AI initiative was announced earlier by Prime Minister Shehbaz Sharif with a vision to invest around $1 billion in artificial intelligence by 2030. The plan includes introducing AI curriculum in schools, providing 1,000 PhD scholarships, and training one million non-IT professionals in AI skills.
The low initial allocation shows the government’s financial constraints. The entire Information Technology Division has received a development budget of Rs. 20 billion for the next year, and the AI program takes up about 5% of it. Another project, Pakawaz Secure Mobile Communication Ecosystem, got Rs. 250 million.
Experts believe this small start may delay Pakistan’s progress in the global AI race. The project still needs full approvals. Many hope the government will increase funding in future years to build a strong AI ecosystem.