In a major push to boost the technology sector and create job opportunities for the youth, Pakistan revealed the establishment of four new Special Technology Zones (STZs) with an annual export potential of $350 million.
The Special Technology Zones Authority (STZA) announced that these zones will focus on Business Process Outsourcing (BPO), Information Technology, High-tech Production, Research and Development, Tech Skill Development, and Knowledge Products.
New Special Technology Zones
The newly designated zones include:
- NUST Special Technology Zone
- Tech7 Special Technology Zone in Islamabad
- Mindbridge Special Technology Zone in Lahore
- Capital Smart Technology Zone in Rawalpindi.
Key features of new Tech Zones
- Covering 1.4 million square feet of high-quality tech infrastructure across 130 acres of land, these zones are strategically located to foster innovation, drive economic growth, enhance technology exports, and position Pakistan as a key player in the global technology arena.
- An initial investment of PKR 30 billion ($108 million) has already been made in developing specialized tech infrastructure, with an additional PKR 150 billion ($540 million) expected over the next 2-4 years from local and foreign technology companies.
- These zones can house more than 50,000 professionals, providing a significant boost to Pakistan’s technology workforce and export potential.
The creation of these zones is aligned with the vision of the Prime Minister and the Federal Government to prioritize the technology sector and enable job creation for the youth. The accelerated rollout of these zones is also in line with the economic pillars of the Special Investment Facilitation Council (SIFC), a civil-military hybrid forum established to attract foreign direct investment in sectors such as agriculture, mining, information technology, defense production, and energy.
In addition to the 12 existing STZs, which are home to over 15,000 technology professionals, the new zones will offer state-of-the-art facilities, cutting-edge infrastructure, and high-speed internet connectivity, ensuring that enterprises can compete and thrive in the global market. Companies operating within these zones will benefit from significant incentives, including 10-year exemptions on income tax, customs duties, and forex benefits, making them an attractive destination for technology sector companies.
This initiative comes as Pakistan continues to face economic challenges, including low foreign exchange reserves, currency devaluation, and high inflation. The government is making concerted efforts to boost foreign investment, reduce reliance on foreign debt, and strengthen the country’s $350 billion economy.