ISLAMABAD: Pakistan’s federal government has allocated PKR 4.8 billion for 31 schemes aimed at promoting science and technology under the Public Sector Development Programme (PSDP) for the fiscal year 2025–26 to strengthen the country’s innovation and research infrastructure.
According to official documents released on Tuesday, the funding will support a mix of ongoing and new initiatives in research and development, technical training, and scientific collaboration.
The move underscores the government’s stated commitment to enhancing the country’s capacity in science, technology, and innovation as a cornerstone for long-term economic growth.
In his budget speech, Finance Minister Muhammad Aurangzeb said the government intended to “change the economic DNA” of the country by introducing foundational reforms, including increased investment in education and technology sectors.
As part of broader development spending, the government has also earmarked PKR 9.8 billion for the construction and expansion of Daanish Schools to improve access to quality education in underserved areas.
In addition to development expenditures, the budget introduced new taxation measures targeting the digital economy.
Individuals conducting business through e-commerce platforms will now be subject to taxation, as the government moves to bring the growing online marketplace into the formal tax net.
The budget also proposed an increase in the income tax rate on interest income, raising it from 15% to 20%. This measure is expected to generate additional revenue and align with the government’s broader tax reforms.
Finance Minister Aurangzeb presented the PKR 17.573 trillion federal budget on Tuesday, which represents a 7% reduction in overall outlay compared to the previous fiscal year.
The budget includes major allocations for defence, economic stabilisation measures, and targeted tax relief for salaried individuals.
As part of its economic targets, the government has projected a 4.2% GDP growth for FY26, up from 2.7% in the outgoing fiscal year.
The budget also forecasts a current account deficit of $2.1 billion (0.5% of GDP), with exports of goods projected at $35.3 billion and remittances estimated at $39.4 billion.
