Pakistan has recently established four new Special Technology Zones aimed at bolstering its technology sector and economic growth.
According to the Special Technology Zones Authority, these zones have the capacity to accommodate up to 50,000 professionals and are projected to generate annual exports worth $350 million.
The newly designated zones are the Mindbridge Special Technology Zone in Lahore, Capital Smart Technology Zone in Rawalpindi, and both the NUST and Tech7 Special Technology Zones in Islamabad. Together, these zones cover 1.4 million square feet of advanced tech infrastructure spread over 130 acres of land.
These initiatives are designed to stimulate innovation, drive economic growth, and enhance technology exports, positioning Pakistan as a significant player in the global tech industry.
An initial investment of PKR 30 billion has been allocated for the development of these tech hubs, with an anticipated additional investment of over PKR 150 billion from local and international tech firms over the next 2-4 years.
The establishment of these zones aligns with Pakistan’s economic strategy under the Special Investment Facilitation Council (SIFC), a hybrid civil-military body formed in June 2023 to attract foreign direct investment across various sectors, including technology. The new zones are expected to boost both local and foreign direct investment in the technology sector.
In addition to the 12 existing zones that house over 15,000 technology professionals, the new STZs will provide state-of-the-art facilities, cutting-edge infrastructure, and high-speed internet, enabling businesses to thrive globally.
Incentives include 10-year tax exemptions and customs duty waivers, along with forex benefits for licensed technology companies.
This expansion is part of Pakistan’s broader effort to attract foreign investment, reduce reliance on foreign debt, and stabilize its $350 billion economy, which faces challenges such as low foreign exchange reserves, currency devaluation, and high inflation. The country has recently reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan deal.
