The government’s Private Software Export Board (PSEB) says that it hopes to sign an implementation agreement within the next few weeks with Singapore’s Promet for the establishment of a software technology park in Islamabad. PSEB says that it is currently in negotiations with Promet concerning the details of the project.

Under the agreement, Promet will develop 10,000 square metres of office space and associated facilities on a build-own-operate (BOO) basis, with the possibility of further expansion at a later stage. Promet will finance the development and then recoup costs from rent and service charges.

The implementation agreement will allow Promet six months to raise the necessary financing for the project – expected to be about $20 million. Construction is expected to start after agreement on financing has been reached. PSEB had earlier hoped to get construction under way in 1996.

The park is part of a government policy to encourage software export companies to establish in Pakistan. The policy includes incentives such as tax and duty exemptions and financial support. PSEB is also planning to develop a similar park in Karachi. The board has issued tender documents and says it hopes to receive proposals from international companies towards the end of the year (MEED 8:3:96).