ISLAMABAD: An audit report has termed Islamabad’s technology park project an unfinished dream, revealing lapses in its execution and raising concerns over non-utilisation of foreign loans, cost escalation, delays and failure to meet the strategic IT sector objectives.
According to the audit report, the Technology Park Development Project initiated by the Ministry of Information Technology and Telecommunication in January 2017 was meant to foster innovation, boost IT exports and bridge the gap between academia and industry. However, the audit noted that critical targets remained unmet even eight years into the project’s timeline.
The project was launched at an estimated cost of $88.38 million with the bulk of funding - $76.31 million - coming through a soft loan from the Korean Exim Bank. The remaining Rs1.26 billion (approx. $12 million at the time) was to be funded locally through the Public Sector Development Programme (PSDP).
The revised PC-I in 2020 increased the local share to Rs1.93 billion due to delays and inflationary pressure.
The soft loan agreement, signed in March 2017, carried a nominal interest rate of 0.1pc to be repaid in 60 semi-annual installments, starting after a 10.5-year grace period.
The audit pointed out that as of October 2021, no civil construction had been initiated on the site despite the project being halfway through its loan repayment grace period. The inactivity has already led to increased financial exposure, loss of time, and escalation in project costs.
It also highlighted absence of a marketing or outreach plan in the original feasibility study or PC-I to attract IT firms and stakeholders. No formal agreements were signed with potential users or tenants of the park and key targets outlined in the 2020-21 performance agreement signed between the minister for IT and the prime minister were also not met.
The report stated that unutilised infrastructure and delayed revenue generation was due to the lack of stakeholder engagement.
It said unless immediate steps were taken to take users onboard, the facility, once completed, may lie underutilised.
In a meeting of the Departmental Accounts Committee (DAC) held on June 30, 2025, the Ministry of Information Technology and Telecom stated that the delay was due to the prolonged process of securing mandatory approvals from the CDA and the Pakistan Environment Protection Agency (Pak-EPA).
“Both NOCs have since been obtained, and the request for proposal (RFP) for the building’s construction was floated on October 15, 2021,” it said.
The ministry also blamed currency devaluation for the revised project cost, which now stands at Rs13.72 billion. It clarified that the project financing involved coordination with multiple stakeholders, including the Korean Exim Bank, whose approvals were mandatory under the loan agreement.
While DAC accepted the justification regarding feasibility and loan-related procedural constraints, it directed the ministry to explain the cost and time overruns before the Public Accounts Committee (PAC).
The audit office, on the other hand, maintained its stance, reiterating that the original 48-month timeline - starting from January 2017 - had been breached multiple times with revised completion now expected by mid-2025 and possibly extending into FY 2025-26. The report underscored the risk of underutilisation and financial inefficiencies if pre-occupancy agreements and strategic tenant engagement remained unaddressed.
Published in Dawn, August 3rd, 2025
