Pakistan Launches Four New Special Technology Zones in Punjab with $350 Million Potential

Pakistan has made a significant stride towards boosting its exports by establishing four Special Technology Zones (STZs) in Punjab. These zones hold the potential to generate a substantial $350 million in annual exports, marking a critical development in the country’s tech landscape.

The Special Technology Zones Authority (STZA) announced this initiative on the social media platform X, highlighting the zones’ capacity to accommodate up to 50,000 professionals. This development will provide a significant boost to Pakistan’s growing tech sector.

Pakistan Launches Four New Special Technology Zones in Punjab with $350 Million Potential

“In line with the vision of the Prime Minister and the federal government to enable job creation for the youth and prioritise the technology sector, the STZA is pleased to announce the notification of four new STZs with a focus on business process outsourcing, Information Technology, high-tech production, research and development, tech skill development, and knowledge products,” the STZA stated.

The newly designated zones are NUST Special Technology Zone and Tech7 Special Technology Zone in Islamabad, Mindbridge Special Technology Zone in Lahore, and Capital Smart Technology Zone in Rawalpindi. Collectively, these zones cover 1.4 million square feet of tech infrastructure and 130 acres of land dedicated exclusively to technology companies.

The STZA emphasized that the accelerated roll-out of these STZs aligns with the economic pillars of the Special Investment Facilitation Council (SIFC), which aims to increase technology-related local and foreign direct investment in the country. So far, Rs30 billion has already been invested in developing the specialized infrastructure, with an additional Rs150 billion expected over the next two to four years from both local and foreign technology companies.

The STZA policy offers substantial incentives for licensed technology companies operating within these zones, including 10-year exemptions on income tax, customs duties, and forex benefits. These incentives will attract and retain both local and international tech firms, fostering a vibrant and dynamic tech ecosystem in Pakistan.

The Special Technology Zones Authority highlighted the zones’ capacity to accommodate up to 50,000 professionals.

However, this announcement comes at a time when Pakistan is experiencing nationwide internet disruptions. The cause of these disruptions remains unidentified, but the tech industry has expressed significant concerns. The Pakistan Software Houses Association (P@SHA) has warned that these disruptions could cost the country’s economy up to $300 million. Ali Ihsan, senior vice chairman of P@SHA, stated, “These disruptions are not mere inconveniences; they are a direct, tangible, and aggressive assault on the industry’s viability – inflicting estimated financial losses that could further escalate exponentially.”

Despite these challenges, the establishment of the four STZs represents a promising step towards strengthening Pakistan’s tech industry and enhancing its export capabilities. The focus on creating dedicated tech zones reflects the government’s commitment to fostering innovation, job creation, and economic growth through technology.

See Also: STZA and NTC Meet to Strengthen Technology Ecosystem in Pakistan