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The Special Technology Zones Authority (STZA) has unveiled plans for four new Special Technology Zones (STZs) in Pakistan, with a substantial investment of Rs30 billion in infrastructure. This strategic initiative is poised to generate 50,000 jobs and boost the country’s IT exports by $350 million annually over the next two to four years.
Key Zones and Investment
The newly designated zones include:
- NUST Special Technology Zone and Tech7 Special Technology Zone in Islamabad
- Mindbridge Special Technology Zone in Lahore
- Capital Smart Technology Zone in Rawalpindi
These zones are set to accommodate over 50,000 professionals, covering 1.4 million square feet of tech infrastructure across 130 acres of land exclusively reserved for technology companies. Initial investments in these zones total Rs30 billion, with additional investments of over Rs150 billion anticipated from both local and foreign technology companies in the coming years.
Impact on IT Exports and Economic Growth
Pakistan’s IT exports reached a record high of $3.22 billion in the fiscal year ending June 30, 2024, reflecting a 24% increase from the previous fiscal year. The creation of these new zones is expected to further elevate IT exports to between $4-5 billion in the fiscal year 2024-25. The increased export potential underscores the critical role of IT exports in driving the country’s economic self-reliance and improving the balance of payments.
Strategic Importance and Government Support
The establishment of these zones aligns with the vision of the prime minister and federal government to prioritize technology sector growth and job creation. The zones will focus on business process outsourcing, information technology, high-tech production, research and development, tech skill development, and knowledge products. This initiative is part of a broader strategy to position Pakistan as a significant player in the global technology market.
The accelerated rollout of STZs is closely tied to the economic pillars of the Special Investment Facilitation Council (SIFC) and aims to attract both local and foreign direct investment in the technology sector.
Facilities and Incentives
In addition to the 12 existing zones that employ over 15,000 technology professionals, the newly notified zones will offer state-of-the-art facilities, cutting-edge infrastructure, and high-speed internet connectivity. These zones are exclusively designated for technology sector companies under STZA policy and come with significant incentives, including:
- 10-year exemptions on income tax
- Customs duty exemptions
- Forex benefits for licensed technology companies
These incentives are designed to ensure that enterprises operating within the zones can compete effectively in the global market and thrive in a rapidly evolving technological landscape.
Conclusion
The creation of these new Special Technology Zones represents a significant step forward in Pakistan’s efforts to enhance its technology sector and expand its IT export capabilities. With robust government support and substantial investment, these zones are expected to play a pivotal role in driving economic growth, job creation, and innovation in the years to come.
