Karachi IT Park Faces Fresh Delay as 2nd Tender Draws No Bids

The Karachi IT Park project has suffered another setback after its second tender failed to attract any bidders, prompting the Ministry of IT to seek Rs. 11,500 million in the PSDP 2026 27 to keep the Rs. 31,200 million project on track.

The ministry’s documents show that cumulative spending has so far reached Rs. 1,443 million, with physical progress at 10 percent and financial progress at 5 percent. The project is planned over six years, but has already faced nearly three years of delay.

Officials said the initiative, located near Karachi airport, ran into complications after objections were raised by the Civil Aviation Authority. The concerns led to revisions in the building design and cancellation of the initial land allotment, forcing the ministry to secure fresh approvals and slowing implementation.

The tender process has also struggled. A Korean contractor was sought through two separate advertisements, yet no bids were submitted. The first round coincided with Pakistan-India tensions, while the second attempt also failed to generate interest. Following approval of the draft Request for Proposal by the Korean Exim Bank, authorities are now preparing to launch a third tender and expect a competitive response.

The project is structured on the model of the Islamabad IT Park and is expected to be financed through a loan from the Korean Exim Bank. Around 20 to 25 firms are registered with the bank, and a webinar has already been held to encourage participation. Officials acknowledged that strict action linked to delays in the Islamabad project may have influenced bidder sentiment for Karachi, though they believe those concerns have largely been resolved.

Designed as a 111,000 square meter facility, the Karachi IT Park aims to boost technology, innovation, and entrepreneurship. It will offer office space for startups and small and medium enterprises, along with testing laboratories, classrooms, an industry-academia linkage center, an auditorium, a guest house, a daycare, a gym, conference rooms, restaurants, and a modern data centre.

Groundbreaking took place in 2022, the boundary wall has been completed, land testing finalized, and detailed design prepared by a Korean consultant. Despite repeated delays, the Ministry of IT has stated that the overall project cost will remain unchanged.