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Govt Slashes IT Ministry Development Budget by 43% for FY 2025-26

In a surprising move, the federal government has reduced the development budget for the Ministry of Information Technology and Telecommunication by 43% for the fiscal year 2025-26, despite previous commitments to prioritize the sector as a key pillar of economic growth.

As per official budget documents, the proposed development allocation for the IT Ministry is set at Rs. 13.52 billion, a sharp decline from the Rs. 23.92 billion allocated in the previous fiscal year. This marks a cut of Rs. 10.4 billion.

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Of the total proposed budget, Rs. 3.64 billion will come from domestic sources, while Rs. 9.88 billion is expected to be secured through external financing.

This substantial reduction stands in contrast to the government’s earlier assurances of boosting investment in the IT and telecommunication sectors to drive exports, digital innovation, and job creation.