The USF budget 2026-27 has been approved at Rs32.90 billion to expand digital connectivity in unserved and underserved areas across Pakistan. The Universal Service Fund (USF) Policy Committee approved the allocation at a meeting chaired by Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja, with funding focused on broadband and optical-fibre infrastructure.
The decision comes as Pakistan continues efforts to expand telecommunications access and reduce the digital divide between connected urban centres and remote communities. Under the approved programme, existing projects will receive the largest share of funding, while additional resources will be directed towards new connectivity initiatives.
Rs24.89 Billion for Ongoing Projects
According to the approved plan, Rs24.89 billion has been allocated for disbursements against ongoing USF projects. Another Rs6.56 billion has been earmarked for new initiatives during the fiscal year.
The committee also approved the release of Rs5.57 billion as the first-quarter allocation to support implementation of the programme.
The USF budget 2026-27 will therefore cover both projects already under implementation and new schemes intended to extend telecommunications services to areas where reliable connectivity remains limited.
USF Chief Executive Officer Mudassar Naveed and senior management briefed the committee on the proposed project portfolio and spending priorities.
28 Projects Already Underway
The Universal Service Fund currently has 28 projects under implementation across its major connectivity programmes.
These include 17 Next Generation Broadband Service Delivery (NG-BSD) mobile broadband projects and 11 Next Generation Optical Fiber Network Services (NG-OFNS) projects.
The NG-BSD projects are designed to improve mobile broadband availability, particularly in locations that remain underserved by existing networks. The optical-fibre projects, meanwhile, are intended to strengthen the underlying telecommunications infrastructure needed to support reliable high-speed connectivity.
Together, these projects form a major part of the country’s ongoing effort to expand digital access beyond major cities.
New Broadband Projects Approved
The committee also approved nine new NG-BSD projects and four new NG-OFNS projects.
In addition, block allocations were approved for small lots under both programmes. These allocations are intended to provide flexibility for smaller connectivity projects in areas that may not be covered by larger infrastructure schemes.
The USF budget 2026-27 is consequently expected to support a combination of large ongoing projects and smaller interventions aimed at addressing connectivity gaps in specific communities.
The focus on unserved and underserved areas is particularly important for rural and remote populations, where commercial operators may face greater challenges in expanding infrastructure.
Closing Pakistan’s Digital Divide
Access to reliable internet has become increasingly important for education, employment, healthcare, financial services and government facilities.
Communities without dependable broadband or mobile connectivity can face difficulties accessing online education, digital services and economic opportunities. Expanding telecommunications infrastructure can help connect these communities to services and markets that are increasingly dependent on internet access.
The USF budget 2026-27 is focused specifically on this connectivity gap, with funding directed towards areas where existing telecommunications services remain insufficient.
The Universal Service Fund was established under Pakistan’s telecommunications framework to support access to telecom services in unserved, underserved, rural and remote areas.
Government Push for Digital Connectivity
The latest funding decision is part of the government’s broader digital transformation agenda. The Ministry of IT and Telecommunication has recently highlighted connectivity and telecommunications infrastructure as important components of Pakistan’s move towards a digital economy.
The ministry has also been working on wider digital initiatives, including efforts to improve connectivity and digital inclusion across the country.
For the USF, the challenge is not simply increasing the number of connected users but extending infrastructure into locations where access remains limited.
Focus on Rural and Remote Areas
Pakistan’s geography presents significant challenges for telecommunications expansion. Remote villages, mountainous regions and sparsely populated areas can require greater infrastructure investment than densely populated cities.
The new projects under the USF budget 2026-27 are intended to address some of these challenges by supporting mobile broadband and optical-fibre networks in underserved locations.
Better connectivity can also provide businesses in smaller communities with greater access to online markets and digital payment systems while helping students and professionals use online learning and remote-work platforms.
Implementation will now be an important part of the programme. The approved first-quarter allocation of Rs5.57 billion is expected to provide initial funding for projects during the fiscal year.
The government and USF management will need to oversee the rollout of both existing and newly approved projects to ensure that allocated resources translate into actual connectivity improvements.
With Rs32.90 billion approved under the USF budget 2026-27, the programme represents a substantial investment in expanding Pakistan’s telecommunications infrastructure.
The combination of 28 ongoing projects, 13 newly approved NG-BSD and NG-OFNS projects, and additional small-lot allocations is expected to extend digital services to more communities. The broader objective remains to reduce connectivity gaps and ensure that residents of underserved and remote areas can participate more fully in Pakistan’s increasingly digital economy.
