Islamabad IT Park Faces Major Delays Despite $78M Korean Funding

The much-awaited Islamabad IT Park project, funded by South Korea, has once again come under the spotlight as lawmakers voiced frustration over missed deadlines, repeated delays, and lack of visible progress despite significant foreign investment.

During a briefing to the National Assembly’s Standing Committee on Information Technology, Secretary IT Zarar Hashim said the Islamabad Technology Park is being established with Korean funding of $78 million, approved back in 2017 under a concessional loan. The loan carries a 0.5% markup with a 10-year grace period and will be repaid by Pakistan in easy instalments over 30 years.

Hashim added that the park, being built on 14.9 acres in Islamabad, aims to attract IT companies, boost exports, and provide global-standard facilities. A similar project is also planned for Karachi, likewise supported by Korean financing.

Project Director Aamir Ahmed, in his briefing, explained that the project was supposed to be completed in 30 months, with an official deadline of October 31, 2025. He noted that so far, 71% of physical work has been completed. Of the total funding, $76.3 million is being financed through Korea, while $12.5 million has been allocated through Pakistan’s Public Sector Development Programme (PSDP).

Ahmed insisted that the project is still within its approved cost estimates due to strict clauses in the agreement with the Korean company, requiring delivery within the set budget.

However, lawmakers questioned why the project, which should have been completed by February 2025, has been repeatedly delayed despite two visits by the Prime Minister himself.

Islamabad IT Park Project Delayed to 2026, Lawmakers Warn Korean Firm

The Korean company’s representatives cited heavy rains before construction, a six-month import ban caused by the dollar crisis, and high duties and taxes as reasons behind the slowdown. They also said the company repeatedly sought exemptions from the government on duties and taxes.

Committee members were unconvinced, asking why such issues were not resolved at the time of contract signing. The Project Director further revealed that nine project managers had been changed within just 13 months, which also contributed to setbacks.

Committee Chairman Syed Aminul Haque expressed serious concern, reminding the Korean side that the project is already eight months behind schedule. “Will this project be completed by October 31?” he pressed.

The Project Director and company representatives admitted that completion by the deadline was impossible. Instead, the company promised that most work would be finished by December 31, 2025, with full commissioning expected by February 2026.

Unhappy with the response, Aminul Haque directed the Ministry of IT to issue a letter of displeasure to the company, warning that failure to meet deadlines could lead to blacklisting. He further instructed that by early November, the ministry must decide what action to take if the project continues to stall.

“The deadline remains October 31. The project must be completed within this timeline,” Aminul Haque emphasized.

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