Pakistan has established four new special technology zones that can accommodate up to 50,000 professionals and have an annual export potential of $350 million, according to the Special Technology Zones Authority (STZA).

The newly designated zones include the Mindbridge Special Technology Zone in Lahore, Capital Smart Technology Zone in Rawalpindi, and NUST Special Technology Zone and Tech7 Special Technology Zone in Islamabad.

These zones, covering 1.4 million square feet of high-quality tech infrastructure on 130 acres of land, are intended to foster innovation, drive economic growth, enhance technology exports, and position Pakistan as a key player in the global technology arena.

An investment of PKR30 billion has already been made in developing the specialized tech infrastructure, and more than PKR150 billion in additional investment is expected from local and foreign technology companies over the next 2-4 years.

The accelerated rollout of these zones is in line with the economic pillars of Pakistan’s Special Investment Facilitation Council (SIFC), a civil-military hybrid forum established in June 2023 to attract foreign direct investment in sectors such as agriculture, mining, information technology, defense production, and energy. These zones will increase technology-related local and foreign direct investment in the country.

In addition to the 12 existing zones that are home to over 15,000 technology professionals, the newly notified zones will offer state-of-the-art facilities, cutting-edge infrastructure, and high-speed internet connectivity, enabling enterprises to compete and thrive in the global market.

The zones also offer significant incentives, including 10-year exemptions on income tax and customs duties, as well as forex benefits to licensed technology companies operating within them.

This development comes as Pakistan seeks to boost foreign investment to reduce its reliance on foreign debt and support its $350 billion fragile economy, which has been facing low foreign exchange reserves, currency devaluation, and high inflation.

The country recently reached a staff-level agreement with the International Monetary Fund (IMF) for a new $7 billion loan deal.

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