Islamabad IT Park, a flagship project of the Ministry of Information Technology, remains under intense scrutiny as lawmakers express concern over delays despite substantial progress on construction. The National Assembly Standing Committee on Information Technology was recently briefed on the current status, where officials disclosed that 71 percent of the physical work has been completed but the project has already surpassed its original schedule. Funded largely by South Korea, the initiative was expected to serve as a catalyst for the technology sector by offering a purpose-built facility to attract IT firms and increase Pakistan’s IT exports.
During the briefing, IT Secretary Zarar Hashim explained that Islamabad IT Park is being developed with South Korea’s concessional loan support. Approved in 2021, the $78 million loan carries an interest rate of just 0.5 percent, with a 10-year grace period and repayment over 30 years. He emphasized that the park is being built to international standards with the objective of providing high-quality infrastructure for technology companies. Hashim also pointed out that a similar project in Karachi, backed by the same source of funding, is facing complications due to issues raised by the Civil Aviation Authority, which may also affect timelines there.
Project Director Aamir Ahmed briefed the committee on the financial and structural details of the Islamabad IT Park. Spread across 14.9 acres, the development is supported by $76.3 million in Korean financing along with $12.5 million allocated under Pakistan’s Public Sector Development Programme. Ahmed stated that construction remains within its approved cost thanks to strict clauses in the agreement with the Korean company responsible for execution. Originally planned to be completed within 30 months, the project was first expected to be ready by February 2025, then shifted to October 31, 2025. However, the new update suggests that the deadline will need to be extended again.
Committee Chairman Syed Aminul Haque voiced concern over the continuing delays and highlighted that Prime Minister Shehbaz Sharif had visited the project site twice, yet progress remains behind schedule. He pressed officials to ensure adherence to the timelines agreed upon with the Korean firm and stressed that the Ministry of IT must monitor the contractor more closely to avoid further setbacks. The committee sought assurance from the project team that the facility would be completed without additional cost overruns and asked for a clear plan to meet the new deadline. This development underscores the challenges of managing large-scale infrastructure projects funded by foreign loans, even when agreements include cost control mechanisms and long repayment windows.
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