Pakistan's $186.7 million Karachi IT Park was originally scheduled for completion in June 2026. Instead, authorities are now aiming to begin its main construction in June 2027 after two tender rounds failed to attract a single bid.
The Ministry of Information Technology and Telecommunication is preparing a third attempt to award the construction contract, according to a ministry report cited by Dawn on October 9, 2026. The revised plan includes an independent review of bidding documents and approval from Korea Exim Bank before the tender can proceed.
The change highlights the scale of the project's delays. Construction is now targeted to start roughly one year after the original completion deadline, while a revised date for finishing the IT Park has yet to be confirmed.
Why has the Karachi IT Park been delayed?
The immediate obstacle is the failure of two construction tenders to attract bids from eligible companies, leaving the authorities without a contractor to carry out the main building work.
According to the ministry's revised procurement strategy, an independent construction contracts consultant will review the bidding documents before the third tender is issued. The assessment will cover the request for proposals, technical specifications and contractual requirements.
The Pakistan Software Export Board had previously sought consultancy services for reviewing project documents through an official procurement notice.
The review is intended to identify provisions that may require clarification or revision before another bidding round. However, the available reporting does not establish why eligible companies declined to submit bids in the earlier attempts.
The project has also faced difficulties beyond its latest procurement problems. In March 2026, ProPakistani reported that aviation-related objections had required design changes and contributed to complications involving the original land allotment.
Those earlier issues form part of the project's wider history of delays, but they do not establish the reason for the lack of bids in the construction tenders.
Third tender: What is the revised schedule?
The ministry has established a new timetable covering the independent review, lender approvals, bidding process and eventual contract signing.
According to Dawn's October 9 report, the review of the revised bidding documents is targeted for completion by October 25, 2026.
The authorities then plan to obtain Korea Exim Bank's approval for re-tendering by November 15, with the third tender scheduled for advertisement on the same date, subject to that approval.
The procurement process is expected to follow the Korean loan's eligibility requirements. Interested eligible Korean companies would be invited to participate in an open competitive bidding process, with applicable tender documents determining the conditions for qualifying companies and any permitted joint ventures or consortia.
The proposed deadline for submitting bids is January 4, 2027.
Technical proposals would be assessed by the project's technical committee, while financial bids would undergo a separate evaluation. The Project Steering and Review Committee would then examine the recommendations before final approval is sought from Korea Exim Bank.
Additional reporting published on October 8 identified February 2027 as the target period for contract negotiations and March as the period for obtaining the lender's no-objection.
The government is targeting March 25, 2027, for signing the construction contract, followed by contractor mobilisation and the planned start of construction in June 2027.
These dates are proposed milestones, not completed decisions. The timetable depends on the third tender attracting acceptable bids and the necessary evaluations and approvals being completed.
How much is the Karachi IT Park project worth?
The Karachi IT Park was originally approved at a cost of $186.658 million, according to the Government of Pakistan's official announcement issued in November 2022.
The Executive Committee of the National Economic Council approved the project on June 4, 2021, with financing divided between a Korean loan and Pakistan's public-sector contribution.
The original financing arrangement comprised:
- $158.416 million in loan financing from Korea Exim Bank.
- $28.242 million as Pakistan's contribution through the Public Sector Development Programme.
- $186.658 million in total approved project financing.
The government valued the original approval at approximately Rs41.39 billion at the time.
The Korean contribution is a loan rather than a grant. The dollar figures represent the original approved financing arrangement and should not be confused with money already spent or a verified current project budget.
While later reporting has referred to project expenditure and different rupee-denominated estimates, the available October 2026 reporting does not establish a newly approved total cost following the unsuccessful construction tenders.
There is no verified basis for describing the full $186.7 million project value as money already spent or lost because of the delays.
Where will the Karachi IT Park be located?
The proposed development is situated near Jinnah International Airport in Karachi's Faisal Cantonment area.
According to the government's original project announcement, the IT Park is designed as an 11-level complex comprising eight floors above ground and three basement levels.
The facility is intended to accommodate technology companies, software businesses, startups and small and medium-sized enterprises.
Its proposed infrastructure includes office space, testing laboratories, classrooms, an auditorium and facilities intended to strengthen cooperation between universities and the technology industry.
The original plan envisaged accommodation for approximately 225 startups and smaller businesses, alongside supporting technical and building infrastructure.
These remain planned facilities. The revised procurement timetable does not establish that the main building has been completed or opened to tenants.
How far behind schedule is the project?
The original completion target was June 2026, as stated in the government's November 2022 announcement when the project's foundation stone was laid.
That deadline has passed without the main construction contract being awarded through the two reported tender rounds.
Under the revised schedule, the government is aiming to sign the construction contract in March 2027 and begin construction in June 2027.
The difference is significant because the new construction-start target falls approximately one year after the date originally set for completing the entire project.
However, the full delay to eventual completion cannot yet be calculated. The latest reported timetable does not provide a confirmed revised completion date or final construction duration.
Further delays remain possible if the third tender receives no acceptable bids or if the procurement and approval process takes longer than planned.
What does the delay mean for Pakistan's IT industry?
The Karachi IT Park was conceived as a major public investment in technology infrastructure, intended to provide dedicated facilities for software companies, startups and other knowledge-based businesses.
At the project's launch in November 2022, the federal government projected that the completed facility could generate employment opportunities for more than 20,000 IT professionals.
That figure is an official projection, not a verified number of jobs already created or a guaranteed employment outcome.
The planned development could offer businesses access to shared infrastructure, technical services and opportunities for collaboration with educational institutions.
For startups and smaller technology companies, such facilities may reduce the difficulty of securing specialised premises and supporting services independently.
However, the project's economic benefits will depend on its eventual completion, operating arrangements, tenant demand and the quality of the facilities delivered.
The continuing procurement delays mean that businesses and professionals cannot yet rely on a confirmed date for the IT Park to become operational.
What happens next?
The next major milestone is the planned completion of the independent review of bidding documents on October 25, 2026.
The ministry then aims to secure Korea Exim Bank's approval for the third tender by November 15.
If approval is obtained and the tender is advertised, the key test will be whether eligible companies submit bids after the previous two rounds failed to attract any offers.
The subsequent evaluation, lender approval and contract-signing stages will determine whether the government can meet its revised June 2027 construction target.
For now, Karachi IT Park remains a major planned technology infrastructure investment whose original completion deadline has passed, with its future construction schedule dependent on a successful third procurement attempt.
