The Government has agreed to set up the Special Technology Zones Authority (STZA) by promulgating an ordinance to exclude zone developers and organisations from tax for 10 years.
Economic zone developers will be relieved of all customs duty and taxes for a term of 10 years from the date of the signing of the Capital Goods Production Agreement.
The Capital Goods Production Arrangement would include (not limited to) products, factories, machinery, hardware, appliances and software manufactured into the country for consumption by SEZ authorities and zone developers.
The aim behind the establishment of economic zones was to provide structural and regulatory support to the tech sector with globally viable and export-oriented mechanisms and ecosystems. In fact, economic zones can also help to establish cooperation between universities, academics and the technology industry.
The zones may provide an atmosphere to accelerate economic growth, boost the quality of indigenous technology goods and services and build employment in the technology sector for young people in the region.
The Cabinet Division has also sought the approval for the draft legislation for the creation of economic zones. Meanwhile, the Prime Minister Imran Khan has also highlighted the need for the creation of the authority for economic uplift.