The Islamabad IT Park project has drawn significant attention as lawmakers voiced growing frustration over continued delays, repeated missed deadlines and lack of visible progress despite substantial foreign investment. Funded by South Korea under a concessional loan agreement approved in 2017, the project was envisioned as a hub to attract IT companies, boost exports and provide global-standard facilities. During a recent briefing to the National Assembly’s Standing Committee on Information Technology, Secretary IT Zarar Hashim outlined the scope of the project, confirming that it is being established on 14.9 acres in Islamabad with a total funding of $78 million carrying a 0.5 percent markup and a ten-year grace period, repayable over thirty years. A similar technology park is also planned for Karachi with Korean financing.
Project Director Aamir Ahmed explained that the park was originally scheduled to be completed within 30 months, with the official deadline set for October 31, 2025. He stated that 71 percent of the physical work has been completed so far, with $76.3 million being financed through Korea and $12.5 million allocated under Pakistan’s Public Sector Development Programme (PSDP). Ahmed assured the committee that the project remains within approved cost estimates due to strict contractual clauses binding the Korean firm to deliver within budget. Despite this, committee members raised concerns that the project, which should have been completed by February 2025, continues to face setbacks even after two visits from the Prime Minister.
Representatives of the Korean company cited heavy rains during construction, a six-month import ban caused by the dollar crisis and high duties and taxes as primary reasons behind the slowdown. They added that multiple requests for duty and tax exemptions had been made to the government. However, committee members questioned why such issues were not resolved at the time of contract signing, pointing to repeated delays as unacceptable. The Project Director further disclosed that nine project managers had been changed within just thirteen months, a factor contributing to the lack of continuity and effective oversight.
Committee Chairman Syed Aminul Haque expressed serious concern at the pace of work, reminding the Korean side that the project is already eight months behind schedule and pressing them to confirm whether completion by October 31 remains feasible. Both the Project Director and company representatives admitted that meeting the deadline was impossible but promised that most work would be completed by December 31, 2025, with full commissioning expected by February 2026. Unsatisfied with the response, Aminul Haque directed the Ministry of IT to issue a letter of displeasure to the company and warned that failure to meet deadlines could lead to blacklisting. He instructed that by early November, the ministry must decide what action to take if delays persist, while maintaining that the October 31 deadline officially remains in place.
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