4 tech zones set up amid increased surveillance
The Special Technology Zones Authority (STZA) has announced the creation of four new special technology zones (STZs), with an investment of Rs30 billion in infrastructure. The initiative aims to generate 50,000 jobs and boost IT exports by $350 million annually over the next two to four years.
In a statement issued on Thursday, the authority revealed that the newly designated zones include the NUST Special Technology Zone and Tech7 Special Technology Zone in Islamabad, the Mindbridge Special Technology Zone in Lahore, and the Capital Smart Technology Zone in Rawalpindi.
These zones will have the capacity to house more than 50,000 professionals, with an export potential exceeding $350 million per year. The four zones comprise 1.4 million square feet of high-quality tech infrastructure and 130 acres of land designated exclusively for use by technology companies. The zone developers have already invested Rs30 billion in developing the specialised tech infrastructure, with additional investments of over Rs150 billion expected over the next two to four years from local and foreign technology companies.
Pakistan's IT exports reached a record high of $3.22 billion in the fiscal year ending June 30, 2024, marking a 24% increase from $2.59 billion in FY23. Projections suggest that exports could rise to $4-5 billion in the current fiscal year 2024-25, as IT exports remain a crucial pillar for the country's economic self-reliance and balance of payments improvement in the coming years.
The announcement of the new zones, offering facilities and incentives, comes amid reports that some IT firms are considering relocating their businesses abroad due to disruptions caused by a slowdown in internet speed, apparently resulting from increased government surveillance.
According to the STZA statement, the zones have been notified in alignment with the vision of the prime minister and the federal government to enable job creation for the youth and prioritise the technology sector, with a focus on business process outsourcing, information technology, high-tech production, research and development, tech skill development, and knowledge products.
These zones have been strategically notified to foster innovation, drive economic growth, enhance technology exports, and position Pakistan as a key player in the global technology arena. The accelerated rollout of STZs aligns with the economic pillars of the Special Investment Facilitation Council (SIFC) and will increase both local and foreign direct investment in the technology sector.
In addition to the 12 existing zones, which 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, ensuring that enterprises can compete and thrive in the global market."
Exclusively designated for technology sector companies under STZA policy, these zones also offer significant incentives, including 10-year exemptions on income tax and customs duties, as well as forex benefits for licensed technology companies operating within them.