Karachi IT Park heads for third tender after two failed attempts
ISLAMABAD: The Karachi IT Park project is headed for a third round of bidding after two earlier attempts to hire a contractor failed to attract a single bid.
The IT ministry has decided to have the bidding documents independently reviewed by a construction contracts consultant before the fresh tender is floated. The review of the draft request for proposals is due by October 25, the tender is expected to be advertised by November 15, bids will be received until January 4, 2027, and the contract is targeted for signing by March 25, 2027.
The government wants a Korean contractor for the project, which is planned as a purpose-built facility for software houses, startups and IT services firms in Karachi.
The park carries a price tag of $186.66 million. Korea’s Economic Development Cooperation Fund is providing a $158.42 million loan, while the remaining $28.24 million comes from the Public Sector Development Programme.
Why the first two Karachi IT Park tenders failed
Two consecutive tenders closed without receiving any bids, a signal that contractors found the terms, pricing or risk allocation unworkable. Rather than pushing ahead with the same documents, the ministry will now put the bidding papers through an independent review to identify what kept bidders away.
The decision suggests the government wants to get the commercial terms right before testing the market a third time, since another failed round would push the project further behind schedule.
What the timeline looks like now
If the revised schedule holds, the consultant’s review wraps up by October 25 and the advertisement follows within three weeks. Bidders then get about seven weeks, until January 4, 2027, to prepare proposals, with evaluation and award targeted for the first quarter of 2027 and signing by March 25.
For Karachi’s IT industry, which has grown faster than its office infrastructure, the park promises dedicated space with the power, connectivity and facilities that technology firms need. The city’s software exporters have long complained about the shortage of purpose-built premises.
FAQ
Why is the Karachi IT Park being tendered a third time?
The first two tenders received zero bids, so the IT ministry will revise the bidding documents through an independent consultant before trying again.
What is the project cost?
$186.66 million, funded by a $158.42 million Korean EDCF loan and $28.24 million from the PSDP.
When will the contract be signed?
The government targets March 25, 2027, with bids due by January 4, 2027.
