The Special Technology Zone Authority Act, 2021 was established by the National Assembly in order to encourage foreign direct investment (FDI) in the country’s tech sector.
The document adds that the lower house of parliament has adopted a bill pertaining to the growth of the scientific and technology environment through the establishment of zones in the country, as reported by Profit by Pakistan Today.
The government hopes to provide institutional and legislative support for the national technology sector by creating internationally competitive and export-oriented structures and ecosystems, as well as fostering collaboration between academia, research, and the technology industry, through this act.
The Act aims to assist in the creation of technology-related jobs and the utilisation of Pakistan’s youth dividend.
According to the document, in addition to improving the quality of domestic technological products and services and stimulating innovation, the establishment of the authority would help to the development of an environment that will attract foreign direct investment.
The government would create a Special Technology Zones Authority (STZA) with a chairwoman and up to eight members, according to the paper.
The authority will have sole responsibility over zone planning, policy formulation, implementation, monitoring, and assessment, as well as the ability to approve and notify zones in line with laws and regulations.
The body may also discover and encourage investment possibilities in the technology sector both within and beyond Pakistan.
It can also establish and approve methods and arrangements for zone management and operation, such as a one-stop shop for all services and utilities, physical and logistical infrastructure, human capital development, and digital infrastructure for the zone.
It can also attract FDI, venture capital funds, public sector investments, public-private partnerships, and private funds to invest in zones.
According to documents, the prime minister will serve as head of the board of directors of authority, which will be made up of 25 ex-officio and independent members nominated by the federal government for a four-year term.
According to details, there would be ten-year income as well as sales tax, customs duty and property tax exemptions to zone developers and enterprises.
The Act is likely to play a key role in bolstering the country’s tech sector and transforming it into a place that fosters continual innovation and advancement.