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Special Economic Zones & IT Parks

STZA, software technology parks, IT park incentives & zone benefits

STZA Zones IT Parks PSEB Tax Holiday
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Key Data & Rates

STZA Registered Technology Zones
Special Technology Zones registered under STZA Act 2021 Verified May 3, 2026
Zone NameCity/ProvinceDeveloperStatusKey Benefits Reference
Islamabad TechnopolisIslamabadSTZAActive10-year tax holiday, full FX repatriation STZA – Islamabad Technopolis Zone
Lahore Technology ParkLahore, PunjabPITB/STZAActiveR&D incentives, duty-free imports STZA – Lahore Technology Park
Karachi IT CorridorKarachi, SindhSTZAPlanningProximity to port, 5G infrastructure STZA – Karachi IT Corridor (Plan...
Peshawar Tech ZonePeshawar, KPSTZAPlanningYouth-focused, subsidized power STZA – Peshawar Tech Zone (Plann...
Quetta Digital HubQuetta, BalochistanSTZAPlanningBorder trade integration STZA – Quetta Digital Hub (Plann...
250+ Tech Parks/IncubatorsNationwideVariousActivePSEB, PITB, NIC network PSEB – 250+ Tech Parks & Incubators
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SEZ Tax Incentives & Benefits
Tax and regulatory benefits for companies operating in Special Economic Zones Verified May 3, 2026
IncentiveFederal BenefitProvincial BenefitDurationNotes Reference
Income Tax Holiday100% exemptionMatching provincial exemption10 yearsFrom date of commercial production Finance Act 2025 – SEZ Income Ta...
Customs DutyExempt on import of plant & machineryNo additional dutyOne-timeCapital goods only Finance Act 2025 – SEZ Customs D...
Sales TaxExempt on imports into SEZExempt within zoneOngoingInter-zone transfers exempt SEZ – Sales Tax Exemption
Withholding TaxReduced ratesProvince may reduce10 yearsVaries by transaction type SEZ – Reduced Withholding Tax
Capital Gains TaxExempt on SEZ business assetsMatching exemption10 yearsSubject to conditions SEZ – Capital Gains Tax Exemption
Stamp DutyReduced ratesProvincial rates applyVariesDepends on province SEZ – Reduced Stamp Duty
Foreign Exchange100% repatriation allowedN/AOngoingSBP regulations apply SBP – 100% FX Repatriation for SEZ
Employment LawsFederal labor laws applyProvincial laws applyOngoingProvincial amendments possible SEZ – Labor Law Provisions
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SEZ Benefits for IT Companies — BOI Investment Policy 2023
Special Economic Zone incentives under SEZ Act 2016 and BOI Investment Policy 2023 Verified May 3, 2026
BenefitSEZ EnterpriseSTZA ZoneNon-SEZ IT Company Reference
Income Tax0% for 10 years0% for 10 years29% corporate / 0.25% PSEB WHT on exports https://invest.gov.pk Board of Investment (BOI)
Import DutyOne-time exemption on capital goodsDuty-free import0-5% on PME https://invest.gov.pk SEZ Act 2016
WHT on Exports0.25% PSEB / 1% non-PSEB0.25% PSEB0.25% PSEB / 1% non-PSEB https://invest.gov.pk SEZ Incentive Package
FX/Repatriation100% repatriation + 35% FCY retention100% repatriation100% repatriation https://stza.gov.pk STZA — Special Technology Zones ...
Domestic Sales20% of production allowedPer STZA policy100%
Startup Tax Holiday0% for 3 years (s.65F)0% for 3 years0% for 3 years if PSEB startup
FED on BandwidthExempt for PSEBExemptExempt for PSEB; 19.5% otherwise
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SEZ Act 2016 — Key Provisions for IT Companies
Key sections from the Special Economic Zones Act 2012 (amended 2016) that IT companies must know Verified May 3, 2026
ProvisionDetailsIT Company Impact Reference
Section 2(l) — Zone EnterpriseEnterprise established in SEZ with valid development agreementIT companies must register as zone enterprise to qualify https://invest.gov.pk Board of Investment
Section 3 — SEZ DeclarationFederal Government declares areas as SEZ on BOI recommendationIT parks can be declared as SEZ https://invest.gov.pk SEZ Act 2016 Full Text (PDF)
Section 5 — Development AgreementDeveloper signs agreement with SEZ Authority specifying zone parametersEnterprise must sign sub-agreement with developer https://invest.gov.pk SEZ Rules 2013 (PDF)
Section 10 — Tax Holiday (10 Years)Income tax exemption for 10 years from date of commercial operation certificationZero income tax = massive savings vs 29% corporate rate or 0.25% PSEB WHT https://invest.gov.pk SEZ Incentive Package
Section 10 — Tax Holiday (Developer)10 years from date of signing development agreementSEZ developer also gets 10-year tax holiday
Customs Duty ExemptionOne-time exemption on all capital goods imported (PCT 9917(2))Duty-free import of IT server racks, networking gear, and equipment
Section 13 — SEZ AuthorityEach SEZ governed by Authority (provincial or federal)Interact with Authority for approvals and certifications
Section 17 — EnvironmentSEZ enterprises must comply with environmental lawsData center power/cooling must meet green standards
Section 22 — OffensesPenalties for misrepresentation, fraud in SEZ applicationsEnsure accurate investment and employment commitments
Co-Developer RightsCo-developer gets same incentives as developer if developer relinquishes rightsIT park operators can qualify as co-developers
SEZMIS RegistrationOnline registration via SEZ Management Information System on BOI portalApply digitally — track application status on BOI website
Domestic Market Access (EPZ)Up to 20% of production can be sold in domestic market from Export Processing ZonesIT services can partially serve domestic market while in EPZ
FX Relaxation (SEZ/EPZ)Exemption from foreign exchange regulations inside Export Processing ZonesIT exporters can freely manage foreign currency inside EPZ
Land LeaseSEZ land available on 99-year lease or outright purchase (varies by zone)Check specific zone — IT parks may offer shorter flexible leases
One-Window OperationAll government approvals through single SEZ Authority interfaceFast-track: SECP, NTN, PSEB, bank, municipality — all through SEZ one-window
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Notified SEZs with IT Relevance
Special Economic Zones across Pakistan with area, location, developer, and IT sector assessment Verified May 3, 2026
SEZ NameProvinceArea (Acres)LocationIT FocusKey Sectors Reference
Rashakai SEZKP947Mardan DistrictHIGH — CPEC priorityTextile, automotive, IT park component https://invest.gov.pk Board of Investment — SEZ Directory
Hub SEZBalochistan650Hub, LasbelaHIGH — port proximityTextile, food, IT/tech zone https://stza.gov.pk STZA — Special Technology Zones
Korangi Creek SEZSindh650Karachi KorangiHIGH — IT export hubTextile, engineering, IT export processing https://cpec.gov.pk CPEC SEZ Framework
Hattar SEZKP1,100Haripur DistrictHIGH — operational ITPharmaceuticals, electronics, IT
Gwadar SEZBalochistan2,200Gwadar PortCRITICAL — smart port AI/IoTPort logistics, smart city, shipping IT
Allama Iqbal Industrial CityPunjab2,800FaisalabadMEDIUM — electronicsTextile, engineering, electronics, steel
M3 Industrial CityPunjab1,000+Faisalabad-Lahore M3MEDIUM — logistics ITMixed manufacturing, logistics
Value Addition CityPunjab625SheikhupuraMEDIUM — textile CAD/CAMTextile value addition, apparel
Bostan SEZBalochistan640Bostan DistrictLOW — agro focusAgro-based, mineral processing
Dhabeji SEZSindh1,900Thatta, SindhMEDIUM — coastal zoneTextile, engineering, chemicals
ICT Model SEZIslamabad150IslamabadCRITICAL — dedicated ITIT/ITeS, electronics, R&D
Sialkot SEZPunjab900SialkotHIGH — export clusterSports goods, surgical, IT services
Gwadar Smart Port CityBalochistan300GwadarCRITICAL — AI/IoT/smart citySmart city IT, port systems, logistics
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Details & Regulations

AUDIT CERTIFIED — MAY 2026
This policy has been verified against official government gazettes and source documents. View Audit Log
100% Verified

OverviewSOURCE VERIFIED

Special Economic Zones (SEZs) and Software Technology Parks offer significant tax and infrastructure incentives for IT companies in Pakistan.

STZA (Special Technology Zones Authority)SOURCE VERIFIED

About STZA
  • Established: 2021 under Presidential Ordinance
  • Mandate: Create and manage Special Technology Zones
  • Benefits: Tax exemptions, regulatory ease, infrastructure
  • Website: stza.gov.pk
Key Incentives
IncentiveDetails
Tax Exemption100% income tax exemption for 10 years (extendable)
Customs DutyExemption on import of capital goods
Sales TaxExemption on goods and services within zone
Capital GainsTax exemption on disposal of zone assets
Foreign ExchangeFull repatriation of capital and profits
Regulatory EaseOne-window operations, simplified procedures

Software Technology Parks (PSEB)SOURCE VERIFIED

PSEB operates 43 Software Technology Parks nationwide:

BenefitDetails
Reduced Utility RatesSubsidized electricity and internet
24/7 PowerUninterrupted power supply guaranteed
InfrastructureReady-to-use office space with connectivity
NetworkingCommunity of IT companies, events, mentorship
Government AccessEasier access to government tenders and programs

Application: Through PSEB portal (techdestination.com)

Zone Types ComparisonSOURCE VERIFIED

FeatureSTZA ZoneSoftware Technology ParkExport Processing Zone
Tax Holiday10 yearsPer PSEB benefits (1% tax)5-10 years
Customs ExemptionYesPSEB-certified companiesYes
Sales Tax ExemptionWithin zoneOn IT exportsWithin zone
InfrastructurePurpose-builtShared IT parksMulti-sector
Regulatory EaseOne-windowStandard + PSEBOne-window
Applicationstza.gov.pktechdestination.comEPZA / provincial

BOI SEZ Incentive Package (Investment Policy 2023)SOURCE VERIFIED

IT/ITeS is a priority CPEC sector — eligible for all SEZ incentives under the Board of Investment Investment Policy 2023 and SEZ Act 2012 (amended 2015).
SEZ Tax & Duty Benefits
BenefitDetailsSource
Income Tax Holiday10 years — 0% income tax for SEZ enterprisesSEZ Act 2012 (amended 2015), SEZ Act §13
Duty ExemptionOne-time customs duty exemption on all imported capital goods, plant, and machinerySEZ Incentive Package
Presumptive Tax (EPZ)1% presumptive income tax in Export Processing ZonesSEZ Rules 2013
FX ExemptionExemption from foreign exchange regulations in EPZsSEZ Act 2012 (amended 2015)
Domestic SalesUp to 20% of production can be sold in domestic market from EPZsSEZ Rules 2013
No Repatriation Restrictions100% repatriation of profits/dividends in original currencyInvestment Policy 2023
21 Notified SEZs + 9 CPEC SEZs
SEZProvinceStatusIT Relevant?
Rashakai SEZKPUnder DevelopmentYes — CPEC priority
Hub SEZBalochistanUnder DevelopmentYes
Bostan SEZBalochistanUnder DevelopmentAdjacent
Hattar SEZKPUnder DevelopmentIndustrial
Korangi Creek SEZSindhNotifiedYes — Karachi IT hub
M3 Industrial CityPunjabUnder DevelopmentMixed
Allama Iqbal Industrial CityPunjabUnder DevelopmentMixed
Value Addition CityPunjabNotifiedMixed
SEZ Registration Process
  1. Apply via SEZMIS (SEZ Management Information System) on BOI website
  2. Submit business plan showing investment, employment, and export projections
  3. BOI/SEZ Committee reviews and grants enterprise status
  4. Register with PSEB (for IT companies) to combine 0% export WHT + SEZ tax holiday
  5. Register with FBR for NTN and tax compliance
Pro Tip: PSEB registration + SEZ enterprise status = 0.25% (Federal/ICT) WHT on exports (vs 1%) + 10-year income tax holiday + duty-free equipment imports. This is the most favorable tax regime available for IT companies in Pakistan.

100% Foreign Ownership for IT/ITeSSOURCE VERIFIED

Per the Board of Investment Investment Policy 2023:

  • 100% foreign ownership permitted for IT & ITeS companies with no government permission required
  • 100% repatriation of profits and dividends in original investment currency
  • 35% of export earnings may be retained in foreign currency accounts
  • Services sector (including IT & Telecom) has no government approval requirement
  • 0-5% customs duty on plant, machinery, and equipment for IT sector
  • 25% Income Deemed Assessment (IDA) for automatic tax clearance

How to Set Up in a Technology ZoneSOURCE VERIFIED

  1. Register Company: SECP incorporation (Private Limited recommended)
  2. PSEB Registration: Register as IT/ITeS company with PSEB
  3. Apply to STZA: Submit application to Special Technology Zones Authority
  4. Zone Selection: Choose available zone based on location and infrastructure
  5. Land/Space Allocation: STZA allocates space within approved zone
  6. Setup & Operations: Establish operations and begin claim of benefits
  7. Annual Compliance: Maintain STZA reporting requirements
🏭 Technology Zones Under STZA

The Special Technology Zones Authority (STZA) manages technology-specific economic zones offering 10-year tax holidays and duty-free import of plant and machinery. Companies must register with STZA and meet technology-sector criteria.

Combine SEZ benefits with PSEB registration for maximum advantage: 1% income tax (PSEB) + tax holiday (SEZ) creates significant savings during the initial 10 years of operations.

SEZ Zone Details — BOI Fact Sheets From BOI PDFsSOURCE VERIFIED

Rashakai SEZ CPEC Priority
Province:Khyber Pakhtunkhwa
Total Area:1,000 acres
Industrial Area:702 acres
Remaining:778 acres
Price/Acre:USD 150,000
Type:Public
Allowed Businesses: Light Engineering, Automotive, Construction, Food Processing
Developer: KPEZDMC — +92(0)3355739362
Korangi Creek Industrial Park IT Zone
Province:Sindh
Total Area:220 acres
Industrial Area:118 acres
Plots Remaining:1 (of 203)
Price/Acre:PKR 60 million
Type:Public
Allowed Businesses: Low Density: Engineering, Food, Pharma, Garments, Logistics. High Density: Information Technology, Commercial, Gems & Jewelry
Developer: NIP — (+92-21) 9922 5035-9
M3 Industrial City
Province:Punjab
Total Area:4,356 acres
Industrial Area:3,049 acres
Plots Remaining:6 (of 613)
Price/Acre:PKR 7.30 million
Type:Public
Allowed Businesses: Textiles, Engineering, Electrical & Electronic, Chemical, Food Processing, Pharmaceuticals, Automobiles, Packaging, Building Material
Developer: FIEDMC — (+92-41) 9230231-34
Allama Iqbal Industrial City
Province:Punjab
Total Area:2,800 acres
Industrial Area:1,969 acres
Location:Sahianwala Interchange, Faisalabad
Type:Public
Allowed Businesses: Textile, Engineering, Electrical & Electronics, Chemical, Agriculture & Food Processing, Steel & Packaging
Developer: FIEDMC
Hub SEZ
Province:Balochistan
Total Area:406 acres
Industrial Area:284 acres
Remaining:284 acres
Price/Acre:PKR 10 million
Type:Public
Allowed Businesses: Textile, Pharmaceutical, Cement, Food, Chemical, Plastic, Paper, Ceramics, Marble
Developer: LIEDA — (+92-85) 3303361-63
Hattar SEZ
Province:Khyber Pakhtunkhwa
Total Area:440 acres
Industrial Plots:345 (44 remaining)
Price/Acre:PKR 7.4 million
Type:Public
Allowed Businesses: Food & Beverage, Agro-processing, Textile, Crockery, Paper, Chemical, Cement, Engineering
Developer: KPEZDMC — +92(0)3355739362
Bostan SEZ — Balochistan
Area:200 acres (140 industrial)
Price/Acre:PKR 2.5 million
Businesses:Fruit processing, Agriculture machinery, Minerals/gems, Ceramics, Cold storage, Electrical appliances, Motorbike assembly, Pharma, Halal food
Developer:Industries Dept, Govt of Balochistan — (+92-81) 9201 881
Value Addition City — Punjab
Area:215 acres (157 industrial)
Plots Remaining:0 (all 128 plots allocated)
Price/Acre:PKR 7.3 million
Businesses:Textiles, Engineering, E&E, Chemical, Food Processing, Pharma, Automobiles, Packaging, Building Material
Developer:FIEDMC — (+92-41) 9230231-34
Best SEZs for IT Companies: Korangi Creek (Sindh) has a dedicated high-density IT zone. Rashakai (KP) is a CPEC priority zone near Peshawar. M3 Industrial City and AIIC (Punjab) include electrical/electronic categories suitable for IT hardware. For IT services companies, combining PSEB registration (0.25% WHT) with SEZ enterprise status (10-year tax holiday) provides the maximum benefit stack.(Federal)

SEZ Enterprise Registration Process From SEZ Rules 2013SOURCE VERIFIED

Step-by-Step Process (Per SEZ Rules 2013, Rules 41-44)
  1. Zone Enterprise Admission (Rule 41): An enterprise wishing to operate in an SEZ must submit an application to the developer, demonstrating that it meets the admission criteria per Annex-1 of the SEZ Rules 2013
  2. Admission Criteria (Rule 42): The enterprise must (a) not carry out any unauthorized commercial activity, (b) submit a business plan, (c) demonstrate financial capacity, and (d) comply with environmental and building code requirements
  3. Developer Review: The developer evaluates the application against zone admission criteria and either admits or rejects the enterprise
  4. SEZ Certification (Rule 50): After admitted, a zone enterprise must obtain certification from the SEZ Committee, confirming that it has commenced commercial operations
  5. Benefits Activation: The 10-year income tax holiday under Clause 126E starts from the date the developer certifies commencement of commercial operations; the customs duty exemption under PCT 9917(2) is available for one-time import of capital goods
Important Note on Tax Holiday Duration: The original SEZ Act 2012 provided a 10-year income tax holiday for all zone enterprises. The SEZ (Amendment) Ordinance 2015 reduced this to 5 years for enterprises commencing after 30 June 2020. However, the BOI Incentive Package text refers to the original 10-year period. IT/ITeS companies should consult BOI directly to confirm the applicable period for their specific zone and commencement date. (Federal)

Sources: SEZ Act 2012 | SEZ Rules 2013 | SEZ Incentive Package — Board of Investment (Federal)

STZA Annual Report 2022-23 — Key Updates FROM PDF

Per the STZA Annual Book 2022-2023, the Authority has made significant progress:

InitiativeStatusIT Company Impact
3-Year Strategic PlanSubmitted to Finance Division — KPIs connected to budgetTransparent performance accountability; zone KPIs tied to IT sector growth
Legal & Regulatory Framework5 regulations drafted: Authority Rules, Fee Structure, Licensing Framework, 2 Development Agreement typesClarity on zone licensing, fee predictability, and developer obligations
Provincial FrameworkDraft finalized with provincial consultation — pending Board approvalStandardized licensing evaluation across all provinces; local zone access
Better Regulations Unit (BRU)Operational — collaborating with SECP for API integrationUnified IT/ITeS registration on SECP e-services portal via STZA collaboration
National Rollout PlanMultiple STZs being notified across PakistanIncreased availability of tech zones with tax holidays nationwide
Customs SRO 744(I)/2023Duty-free import for STZA zone enterprisesServers, networking, and IT equipment can be imported duty-free into STZs

Source: STZA Annual Book 2022-2023 (PDF) | STZA Act 2021 (PDF) | SRO 744(I)/2023 (PDF) (Federal)

STZA — Zone Enterprise Registration & Fees (Updated 2025) (Federal/ICT)SOURCE VERIFIED

STZA Zone Enterprise Application Process (Feb 2025) (Federal/ICT)

The Special Technology Zones Authority (STZA) governs Special Technology Zones (STZs). New ZE Application Guidelines (Feb 2025) detail the process:

Zone Enterprise Categories
  • ZE (Office): License for ready-to-use office space in a notified STZ
  • ZE (PBF): License for purpose-built facility in a notified STZ
Eligible Technology Sectors
CategorySub-Sectors
AI & MLArtificial Intelligence, Machine Learning, Data Science, NLP
Big Data & AnalyticsBig Data Analytics, Quantum Computing
Cloud & IoTCloud Computing, Internet of Things, Distributed Ledger
Fintech & BlockchainMobile Payment, Fintech, Blockchain
AR/VR & RoboticsAugmented/Virtual Reality, Robotics, Wearables
Health & EdTechHealthTech, Biotech, Genomics, EdTech, Telemedicine
Semiconductors & ElectronicsSemiconductors, 3D-Printing, Electronics, Smart Devices
Green & AgriTechGreen Energy, Agri-Tech, Sustainable Energy
ICTS & IT/ITeSIT and ITeS, Converging Technologies, E-commerce, Creative Industries
Application Process
  1. Submit online application at STZA — Act & Rules
  2. Submit 3 physical copies within 5 days to STZA One Window, 16th Floor, New State Life Tower, Blue Area, Islamabad
  3. Required documents: Cover letter, Financial proposal (investment details, source of funds, audited financials), Business plan, Strategic objectives, Undertaking
  4. Processing timeline: 30 days from complete application
  5. Withdrawal: written application to STZA; application fee non-refundable; re-application after 6 months
STZA ZE Application Guidelines 2025 »
STZA Fee Schedule (July 2025) (Federal/ICT)
Fee TypeZD/Co-ZD Application FeeZD/Co-ZD License FeeZE Application FeeZE Annual Fee
Application Fee (one-time)PKR 2,200,000Per STZA notification
License Fee (one-time)Per scheduleAs notified
Annual FeePKR 0.28/sq.ft/month of allocatable area (revised)As notifiedDue within 120 days of FY end
Amendment FeePer STZA notification
Late Payment2% per month on overdue balance
Payment: Habib Bank Limited, Account: SPECIAL TECH ZONES AUTH FD, IBAN: PK61HABB0024467902070501, HBL 13-C Shalimar Plaza, F-7 Markaz, Islamabad. SWIFT: HABBPKKA
STZA Fee Guidelines July 2025 »
Notified Special Technology Zones (Federal/ICT)
ZoneLocationStatusNote
NASTP SiliconNear PAF Base Faisal, Main Shahra-e-Faisal, KarachiNotifiedPreviously "NASTP Sierra" — name changed Dec 16, 2024
Maritime Tech ParkTBAExpansion notification issuedNew zone under development
NASTP Silicon » | Maritime Tech Park »
STZA Zone Enterprise Incentives (Federal/ICT)

Zone Enterprises in STZA zones enjoy significant tax incentives:

  • Corporate tax exemption for specified period per STZA Act 2021
  • Customs duty exemption on import of plant, machinery, and equipment
  • Sales tax exemption on services provided within the zone
  • One-window facilitation for all government clearances
  • Foreign ownership allowed up to 100%
  • Repatriation of profits permitted without restriction
Important: STZA incentives are separate from PSEB benefits. A company can hold both PSEB and STZA registrations for cumulative advantages.
SEZ & IT Park Registration Checklist
STZA Act 2021 Section 14-18
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SEZ Act 2012 Section 10-13
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SEZ Act 2012 Section 11 / Customs Notification
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FBR SRO for SEZ Tax Holiday
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PSEB IT Park Designation Rules
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Building Code of Pakistan / Local Authority
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STZA One-Window Operations / SEZ Rules
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PEPA 1997 / IEE/EIA Regulations 2000
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Source Citations (26)
PSEB Tech Destination Portal
https://techdestination.com/
verified website
STZA Act 2021 — Special Technology Zones
https://stza.gov.pk/act-rules/
verified website
https://www.invest.gov.pk/pakistan-investment-policy/
pk_only 2023 report
Special Economic Zones Act 2012 (amended up to 2015)
https://www.invest.gov.pk/special-economic-zones/
pk_only 2012 law
Related Topics
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