Hajra Naz
The Ministry of Information Technology and Telecommunication is demanding a significant budget increase for the 2025-26 fiscal year under the Public Sector Development Program (PSDP), despite major delays in the Karachi IT Park project.
According to official documents, the total cost of the project is Rs. 31.19 billion, yet only Rs. 837.9 million has been spent so far. The project has only achieved 10% physical progress and 2% financial progress, raising concerns about its slow implementation.
Funding and Foreign Aid
The Karachi IT Park project is being executed under the PSDP with substantial foreign aid of Rs. 26.47 billion. For the current financial year, a budget of Rs. 6.08 billion was allocated, but only Rs. 837.9 million has been utilized, resulting in a significant budget lapse.
Project Design and Procurement Process
The project’s design phase has been completed by the Korean Design Consortium, and the Request for Proposal (RFP) for contractor selection has been approved by Exim Bank. The Pakistan Software Export Board (PSEB) has submitted a position paper through the IT Ministry to the Ministry of Planning, Development, and Special Initiatives for approval to begin the procurement process.
Key Features of Karachi IT Park
Once completed, the Karachi IT Park will be a state-of-the-art facility covering 110,000 square meters across six acres of land. The project includes:
- 240 offices
- An incubation center with 30 startup offices
- A business development center
- An industry-academia collaboration center
- A data center and R&D labs
The IT Park is expected to generate 9,000 direct IT jobs and create over 10,000 indirect employment opportunities, significantly boosting Pakistan’s digital economy.
Project Approval and Funding Sources
The Executive Committee of the National Economic Council (ECNEC) approved the project, “Establishment of IT Park, Karachi,” on June 4, 2021. The project has a total cost of Rs. 41.39 billion ($186.66 million).
The funding sources include:
- Rs. 35.13 billion ($158.41 million) loan from the Korean Exim Bank
- Rs. 6.25 billion ($28.24 million) local share from PSDP
In November 2022, Federal IT Minister Syed Amin ul Haque laid the foundation stone for what is set to become Pakistan’s largest IT park in Karachi.
