IT Ministry sees 43% budget cut in FY 2025-26

ISLAMABAD: The federal government is all set to reduce the development budget of Ministry of Information Technology and Telecommunication by 43% for the fiscal year of 2025-26.

The amount for the Ministry of Information Technology is estimated to be Rs 13.52 billion, dropping from Rs23.92 billion of last’s year as per the budget documents.

According to official budget documents, the IT Ministry’s development allocation has been decreased by Rs10.4 billion, dropping from last year’s Rs23.92 billion to Rs13.52 billion in the upcoming budget.

Rs3.64 billion would come from domestic resources, while Rs9.88 billion is expected from international aid.

This cut in the budget contradicts what government claims to prioritize the digitalization process in the country and making the IT sector a cornerstone of economic growth and innovation.

Earlier, according to official budget documents, the federal government is proposing a more than 114 percent increase in the Ministry of Defense’s development budget for the upcoming fiscal year 2025-26.

The ministry’s allocation is expected to increase from Rs5.386 billion this year to Rs11.554 billion – a move that signals a significant shift in national spending priorities towards defense and security.

Meanwhile, the Ministry of Home Affairs is also set to see its development budget increase from Rs9.78 billion to Rs10.91 billion, with a proposed increase.

However, this defense-oriented approach comes at the expense of several key civilian sectors, which face substantial budget cuts.

The Ministry of Climate Change’s development budget is proposed to be reduced from Rs5.26 billion to Rs2.784 billion.