Delays Increase Islamabad IT Park’s Development Cost By Another Rs. 9.8 Billion

The Islamabad IT Park project under the Ministry of IT & Telecom (MoITT) has faced delays, leading to a cost increase of approximately Rs. 2.76 billion. The project now requires an additional Rs. 9.858 billion from the next fiscal year’s Public Sector Development Program (PSDP), pushing the revised cost to Rs. 26.065 billion. According to official documents, the project, which started on April 20, 2016, and is set for completion by June 30, 2026, was initially estimated to cost Rs. 23.303 billion. So far, Rs. 16.207 billion have been spent, with only 38 percent of the physical work completed despite 40 percent of the allocated budget already being utilized. The groundbreaking ceremony for the IT Park was held on May 26, 2021, at Chak Shahzad, attended by then Minister for IT & Telecom, Syed Amin Ul Haq, and the Ambassador of the Republic of Korea, Suh Sangpyo. The project is being developed with financial assistance from Exim Bank Korea. Spanning 66,893 square meters, the IT Park will comprise twelve stories, including two underground and ten above-ground floors. It is designed to provide office space for over 120 startups and small and medium enterprises (SMEs) along with facilities such as testing laboratories, classrooms, an industry-academia linkage center, and an auditorium. The project is a key component of Pakistan’s Vision 2025, the Sustainable Development Goals (SDGs), and the Digital Pakistan Policy. It aims to establish a modern technology hub equipped with a Level 3 data center, an incubation center for 15 startups, a business support center, and commercial and recreational spaces. The IT Park is also expected to generate 10,000 jobs. While the grey structure has been completed, finishing work and Mechanical, Electrical, and Plumbing (MEP) installations are still in progress. The data center’s design has already been certified by the Telecommunications Industry Association (TIA). Despite concerns over rising costs, IT Park Project Director Aamir Ahmed refuted claims of budget overruns, asserting that the project remains within the approved cost. He explained that the project was sanctioned in US dollars, and its value in Pakistani rupees fluctuates due to exchange rate variations. He further clarified that the price set in the PC-1 document in 2017 remains unchanged in dollar terms, and all payments are being made in dollars. Officials from the Ministry of IT maintain that the project is advancing steadily. They emphasize that the IT Park will play a crucial role in strengthening Pakistan’s technology sector.