Islamabad IT Park Faces Delays Despite $78 Million Korean Loan

The National Assembly Standing Committee on Information Technology expressed strong concerns over delays in the completion of the Islamabad IT Park, a project funded by South Korea, during its latest meeting. Officials from the Ministry of IT and representatives of the Korean company involved briefed the committee on the project’s progress, challenges, and reasons for the delay. Secretary IT Zarar Hashim informed the committee that the Islamabad Technology Park was being developed with Korean funding. He said Pakistan had secured a $78 million loan for the project in 2017, with a ten-year grace period and a thirty-year repayment plan. The loan carried a concessional markup of just 0.5%, to be repaid in easy installments. According to the Secretary, the focus of the IT Park was to attract companies and boost exports, with the facility being built to international standards. He added that both Islamabad and Karachi IT Parks were being financed through Korean assistance, although the Karachi project was facing issues linked to the Civil Aviation Authority. Project Director Aamir Ahmed told the committee that under the agreement, the Islamabad IT Park was originally due for completion by October 31, 2025. He said the total project cost stood at $76.3 million in Korean funding, with an additional $12.5 million allocated under the PSDP. The park spans 14.9 acres of land. He noted that physical progress on the project had reached 71%, and emphasized that the project was being completed within its approved cost, as stipulated in the contract with the Korean company. Committee Chairman Syed Aminul Haque questioned why the project, originally meant to be completed within 30 months, had suffered delays. He pointed out that despite Prime Ministerial visits to the site, progress had stalled. The Korean company’s representative explained that the project faced unusual challenges, including heavy rains at the start, a six-month suspension of imports due to Pakistan’s dollar crisis, and additional delays caused by duties and taxes. The company had repeatedly requested exemptions from these duties. Committee members asked why such issues had not been addressed at the time of contract signing. The representative acknowledged differences in interpretation between the government and the company on this matter. The Project Director revealed that nine project managers had been changed within 13 months, further slowing down progress. He confirmed that the project had already suffered an eight-month delay. When asked whether the project would be completed by the October 31 deadline, the Project Director admitted it was unlikely. The Korean company’s representative added that while most of the work would be finished by December 31, full commissioning of the Islamabad Technology Park would only be completed by February 2026. In response, Chairman Aminul Haque instructed the Ministry of IT to issue a formal letter of dissatisfaction to the company. He warned that if the project was not completed by October 31, another such letter would follow, and the company could even face blacklisting. “The deadline is October 31 and it must be respected,” Aminul Haque stressed. “If the company fails, the Ministry should decide its course of action by November 1.”