Govt takes 12 years to approve IT Park in Karachi

Korean-funded project likely to be completed by 2025

Karachi: After twelve years of thinking and planning, the federal government has finally agreed to build the first Information Technology Park in Karachi.

“The project was conceived 12 years ago. We have been hearing all these years that an IT Park will be constructed here in Karachi. South Korea is funding the project so now there is no point in delaying it any further. I think it may take at least three years to be in place,” said Jehan Ara, the country’s well-known IT expert.

The cost of the project is expected to be around 42 billion rupees and is likely to be completed by June 2025.

At the groundbreaking ceremony, the Federal Minister for Information and Technology, Ameen ul Haq gave a deadline of December 2024, to complete the 11-story building with three parking floors near the Karachi airport. Ameen ul Haq thanked the Korean government for granting the soft loan of about 158 million dollars on a mere 0.01 per cent interest, through Exim Bank. An amount of seven billion dollars would be provided by the government. The Civil Aviation Authority will provide six acres of land near the Karachi airport.

What will IT Park serve?

According to Haq, the IT Park will provide space to 225 new startups or SMEs (small and medium enterprises) for establishing businesses. “Local and international companies will visit the IT Park to have seminars and interact with each other. It will be equipped with a lab, classrooms and auditoriums. The coordination between academia and industry will be encouraged further.”

He said, “We are going to achieve three objectives from the project. First is to boost up the knowledge-based economy, to facilitate startups and SMEs, and the third one is to go forward with modern technology.”

“When I talk about the latest technology, I stress to make ubiquitous the knowledge of artificial intelligence, cyber security, blockchain, 3D, gaming, animation, and now metaverse.”

Jehan Ara said, “There is a need for clusters, as it is a global trend. We went to China, Malaysia and Singapore, where they have provided space for the IT sector. There you can have exhibitions and meetings, make innovations and launch research projects. This park will help startups and SMEs in a big way.”

She said that freelancers who are working from home, may not take an interest initially but as they expand their businesses, they will need space, manpower, and collaboration with other companies. Asif Peer, who is the chief executive of one of the country’s top software exporter companies, Systems Limited, said, “You need to showcase the brand export as the physical infrastructure is essential. When principals like Microsoft or anyone comes, they can see the infrastructure, they can see the companies at one place, and that gives the confidence to buyers so the location always matters.”

The growing tussle with the Finance Ministry

Haq threatened the Federal Finance Minister to mend his behaviour and provide much-needed relief to the IT sector.

“I stand with my IT and telecom industry. If you (Ishaq Dar) don’t change your attitude then mark my words, if I am no longer a minister, you will also not remain a minister and you exactly know what I mean”, Ameen ul Haq, who is also the senior leader of MQM-P warned the Federal Finance Minister.

“You have to give relief and facilitate the people associated with the field of IT. We will be visiting you with a proposal again and I am hopeful that you will accept it,” he added. The software export from Pakistan, he said, stood at 2.62 billion dollars.

Phone & internet and connectivity issues

Ameen ul Haq said his ministry had invested 72 billion rupees to improve internet connectivity and 70 new projects were initiated in the rural areas of KPK, Sindh and Balochistan to benefit youth in particular. In 2018, there were 70 million internet users in the country that have grown to 115 million today. He says the number of mobile phone users is now 195 million out of the 230 million population.

He said a mobile phone manufacturing policy is in place and 29 companies, including Samsung and Nokia, have started manufacturing cellphones in Karachi, Lahore and Sialkot, inscribed with ‘made in Pakistan’.

He said smartphones should cost between 15 to 25 thousand rupees to fall within the reach of people in Lyari, Khairpur and FATA. “We are working hard with manufacturers to devise a policy that our youth could afford these phones in instalments”.