{ "schema_version": "qanun-law-text/1", "id": "pk-code-06d022f693ea5049", "title": "Special Economic Zones Act, 2012", "source_collection": "Federal", "content_kind": "stored_law_text", "content_extent": null, "source_url": "https://pakistancode.gov.pk/alpha/UY2FqaJw1-apaUY2Fqa-apaUY2Fpapc%3D-sg-jjjjjjjjjjjjj", "version": null, "source_snapshot": null, "legal_status": "not independently verified", "text_quality": "Complete stored UTF-8 TXT file recovered byte-for-byte from owned Drive. Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.", "text_sha256": "2a5a98e0ceeccedccbe77a7ddd64ae75305c549dc8556d2224802396eae5a81b", "source_sha256": "2a5a98e0ceeccedccbe77a7ddd64ae75305c549dc8556d2224802396eae5a81b", "text_version_id": "law:pk-code-06d022f693ea5049:sha256:2a5a98e0ceeccedccbe77a7ddd64ae75305c549dc8556d2224802396eae5a81b", "quality_flags": [], "encoding": "UTF-8", "text": "Page 1 of 22 \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\nTHE SPECIAL ECONOMIC ZONES ACT, 2012 \r\n \r\n \r\n \r\n \r\n \r\nCONTENTS \r\n \r\n1. Short title, extent and commencement \r\n2. Act to override other laws \r\n3. Definitions \r\n4. Establishment of special economic zones \r\n5. Board of Approvals \r\n6. Functions and responsibilities of the BOA \r\n7. Approvals Committee \r\n8. Functions of BOI \r\n9. Responsibilities of Provincial investment promotion authorities \r\n10. SEZ Authority \r\n11. Requirements for all zone applications \r\n12. Approval of zone applications \r\n13. Approval of development agreements \r\n14. Simultaneous approval of zone application and development agreement \r\n15. Approval of existing zones \r\n16. Zone approval criteria \r\n17. Functions and powers of SEZ Authorities \r\n18. Suspension and removal of members of SEZ Authorities \r\n19. Eligibility as developer \r\n20. Responsibilities of developers \r\n21. Development agreements \r\n22. Sanctions against developers \r\n23. SEZ committees \r\n24. Admission of zone enterprises \r\n25. Sanctions against zone enterprises \r\n\r\n \r\nPage 2 of 22 \r\n \r\n26. Land regime \r\n27. Public utilities and transportation links \r\n28. Applicable operating administrative procedures \r\n29. Assistance by the BOI and SEZ Authorities \r\n30. Labour laws \r\n31. Employment of key persons \r\n32. Security \r\n33. Omitted \r\n34. Incentives for SEZs \r\n35. Protection of benefits \r\n36. Benefits for developers \r\n37. Benefits for zone enterprises \r\n38. Establishment of Special Economic Zone Appellate Tribunal \r\n39. Alternative dispute resolution procedures \r\n40. Rules and regulations for implementation of this Act\r\n \r\nPage 3 of 22 \r\n \r\nTHE SPECIAL ECONOMIC ZONES ACT, 2012 \r\nACT No. XX OF 2012 \r\n \r\n[12th August, 2012] \r\n \r\nAn Act to provide for setting up and operation of special economic zones in Pakistan \r\n \r\nWHEREAS it is necessary and expedient to promulgate a law for the creation, development and \r\nefficient operation of special economic zones through provision of a legal and regulatory frame work \r\nto encourage domestic and international investors for promotion and establishment of industrial \r\ninfrastructure and for other matters connected or ancillary thereto; \r\n \r\nIt is hereby enacted as follows:― \r\n \r\n1. Short title, extent and commencement.—(1) This Act may be called the Special Economic \r\nZones Act, 2012. \r\n \r\n(2) It extends to the whole of Pakistan. \r\n \r\n(3) It shall come into force on such date as the Federal Government may, by notification in the \r\nofficial Gazette, appoint and different dates may be appointed for coming into effect of different \r\nprovisions of this Act and any reference to commencement shall generally refer to the commencement \r\nof this Act but commencement of any provision that comes i nto force subsequent to the general \r\ncommencement shall be treated from the date of coming into force of the respective provision and not \r\nthe general commencement. \r\n2. Act to override other laws.― The provisions of this Act shall have force notwithstanding \r\nanything to the contrary contained in any other law for the time being in force. \r\n3. Definitions.―In this Act, unless there is anything repugnant in the subject or context,— \r\n \r\n(a) “Approvals Committee” means the committee constituted under section 7; \r\n(b) “arbitration” shall include arbitration under the applicable laws of Pakistan as \r\nwell as arbitration under any applicable international regime, whether selected \r\ncontractually through an agreement in writing or available to a party or parties \r\nas a result of an international agreement accorded or ratified; \r\n(c) “BOA” means the Board of Approvals constituted under section 5; \r\n(d) “BOI” means the Board of Investment established under the Board of \r\nInvestment Ordinance, 2001 (XV of 2001) ; \r\n(e) “capital equipment” means plant, machinery or equipment, accessories, and \r\ncomponent part of machinery and equipment identifiable for use in or with \r\nmachinery required for economic activities and machinery includes machinery \r\nand equipment of any description, such as is used in industrial process, \r\nmanufacture, production or processing of other goods and rendering services, \r\nexcept the goods that are consumed in the manufacturing, production of \r\nprocessing of goods or provision of services; \r\n \r\nPage 4 of 22 \r\n \r\n(f) “developer” means an enterprise which has entered into a development \r\nagreement with a SEZ Authority; \r\n \r\n(g) “development agreement” means a duly approved agreement between SEZ \r\nauthorities and agreed to and endorsed by the BOA and a developer that \r\nauthorises a developer to develop, establish and operate a SEZ; \r\n \r\n(h) “economic zone” means a geographically defined and delimited area which has \r\nbeen notified and approved for economic, industrial and commercial activities; \r\n \r\n(i) “existing zones” means the export processing zones, industrial zones and other \r\nsimilar entities in existence at the time of the commencement of this Act and \r\nincludes but not limited to the following, namely:― \r\n \r\n(i) “export processing zones” means and economic zone which is \r\nestablished under the Export Processing Zones Authority Ordinance, \r\n1980 (IV of 1980); \r\n \r\n(ii) “extra­territorial zone” means an economic zone of a type that is to be \r\ndeemed to be outside the customs territory of Pakistan; \r\n(iii) “free trade zone” means an economic zone that shall be deemed to be \r\noutside the customs territory of Pakistan with respect to which the BOA \r\nshall approve special facilities for trade, transshipment and re -export \r\noperations in accordance with applicable legislation as for the time being \r\nin force in Pakistan; \r\n(iv) “hybrid export processing zone” means an economic zone that shall be \r\ndeemed to be outside the customs territory of Pakistan in which goods \r\nare manufactured and from which services are provided, both for \r\nexportation to countries other than Pakistan as well for export into \r\nPakistan; \r\n(v) “multilateral economic zone” means an economic zone in which all zone \r\nenterprises are required to be beneficially owned by national, residents \r\nor corporate entities of one or more particular countries; \r\n \r\n(vi) “reconstruction opportunity zone” means an economic zone from which \r\nthe exports of goods and services has been recognized by any country \r\nor jurisdiction other than Pakistan as being eligible for reduced tariff \r\nduties and other benefits; \r\n(vii) “regional development zone” means an economic zone wherein \r\neconomic activates are promoted so as to develop particular regions and \r\nindustries; and \r\n(viii) “sector development zone” means a regional development zone in \r\nwhich permissible economic activity shall be limited to one or more \r\nsectors as notified by the BOA; \r\n \r\n(j) “misconduct” means any conduct of a member or Chairperson of the Provincial \r\n \r\nPage 5 of 22 \r\n \r\nSEZ Authority that is prejudicial to the good order and management of the SEZ \r\nAuthority or a SEZ and includes but not limited to the following, namely :― \r\n \r\n(i) a failure to disclose an interest of the member or Chairperson in a transaction \r\nrelated to a SEZ or an interest of the member’s parent, spouse, brother, sister, \r\nchild, or spouse of a parent, brother, sister or child; \r\n \r\n(ii) any act or omission which is ultra vires of this Act; \r\n \r\n(iii) any act or omission which lacks good faith; or \r\n \r\n(iv) any act or omission which is inconsistent with the fiduciary duties of such \r\nmember or Chairperson; \r\n \r\n(k) “Provincial investment promotion authority” means an investment promotion \r\nagency, by whatever name called, formed by a Province to work as focal authority \r\nto promote domestic and foreign investment in that Province such as Sindh Board \r\nof Investment established in Sindh and Punjab Board of Investment and Trade or \r\nany other similar entity; \r\n \r\n1[(l) SEZ Authori ty means the Federal or, as the case may be , a Provincial SEZ \r\nAuthority established under section l0;] \r\n \r\n(m) “SEZ Committee” means the authority chartered by the BOA at each SEZ under \r\nSection 23; \r\n \r\n2[(n) “Special Economic Zone” or “(SEZ)” means a geographically defined and delimited \r\narea which has been approved and notified by the BOA;] \r\n \r\n(o) “zone admission criteria” means the criteria under this Act and to be applied by \r\ndevelopers in deciding whether or not to admit an enterprise into a particular SEZ \r\nincluding thereof zone approval criteria that means the criteria to be applied by the \r\nSEZ Authority and the BOA in deciding whet her to allow or not to allow a \r\nparticular area to be developed as a SEZ; \r\n \r\n(p) “zone application” means an application submitted in accordance with the \r\nprovisions of this Act by an SEZ Authority seeking the notification of an area as a \r\nspecial economic zone; \r\n \r\n(q) “zone development plan” means a business plan for developing a SEZ; \r\n \r\n(r) “zone enterprise” means an enterprise admitted into a SEZ by a developer; and \r\n \r\n(s) “zone regulations” mean regulations made under this Act. \r\n \r\n \r\n \r\n \r\n1Subs. by Act No. XXXIV of 2026, s. 2. \r\n2Subs. by Act No. XLV of 2016, s. 2. \r\n \r\nPage 6 of 22 \r\n \r\n4. Establishment of special economic zones .― The Federal Government and Provincial \r\nGovernments may establish special economic zones by themselves or in collaboration with private \r\nparties under various mode s of collaboration including public -private partnership or exclusively \r\nthrough the private parties as provided under this Act. \r\n \r\n5. Board of Approvals .—(1) There shall be a Board of Approvals, hereinafter called BOA, \r\nconsisting of— \r\n \r\n(i) the Prime Minister of Pakistan who shall be the Chairperson of the BOA; \r\n \r\n(ii) the Minister for Finance who shall be the Vice Chairperson of BOA; \r\n \r\n(iii) the Minister for Industries; \r\n \r\n(iv) the Minister for Production; \r\n \r\n(v) the Minister for Commerce; \r\n \r\n(vi) the Minister for States and Frontier Regions Division; \r\n \r\n(vii) two members of Majlis -e-Shoora (Parliament) to be nominated by the Prime \r\nMinister (one from each House); \r\n \r\n(viii) the Chairman of the BOI; \r\n \r\n(ix) the Deputy Chairman Planning Commission; \r\n \r\n(x) the Chief Minister of each Province; \r\n \r\n(xi) the Chairman of the Federal Board of Revenue; \r\n \r\n(xii) Governor, State Bank of Pakistan; \r\n \r\n(xiii) Secretary BOI; \r\n \r\n(xiv) executive heads of the Provincial investment boards by whatever names known \r\nor if no such board is established a nominee of the Government of such \r\nProvince, having adequate relevant professional experience, the tenure of such \r\nnominees shall be three years; \r\n \r\n(xv) the President of the Federation of the Pakistan Chambers of Commerce and \r\nIndustry; \r\n \r\n(xvi) the President of the Pakistan Business Council; \r\n \r\n(xvii) the President of the Overseas Chamber of Commerce and Industry; and \r\n \r\n(xviii) a professional having relevant adequate experience to be nominated by the \r\nPrime Minister of Pakistan. \r\n \r\nPage 7 of 22 \r\n \r\n(2) The meeting of the BOA shall be convened on the orders of the Chairman BOA or on the \r\nrecommendations of BOI or 1[a] SEZ Authority. \r\n(3) The BOA shall meet as frequently as required but not less than twice a year. \r\n(4) Fifty percent of the members shall constitute quorum of the BOA. \r\n(5) Where the Chairperson is not present, the Vice-chairperson shall chair the BOA’s meeting \r\nand if both are not available, a member designated by the Chairperson shall preside. \r\n(6) The decisions of the BOA shall be taken by majority of the total membership present and \r\nvoting. \r\n(7) The BOA shall adopt its own rules of procedure. \r\n(8) Secretary BOI shall also act as Secretary of the BOA. \r\n6. Functions and responsibilities of the BOA.― The BOA may— \r\n(a) approve such regulations for the implementation of this Act as are applicable to \r\nall SEZs or to a particular group of SEZ or a particular SEZ; \r\n(b) approve or reject zone applications; \r\n(c) approve or reject development agreements; \r\n(d) examine and decide upon policy issues submitted to it by SEZ Authorities or by \r\ndevelopers; \r\n(e) co-opt on the members of the Approvals Committee as necessary; \r\n(f) notify with approval of relevant authorities additional benefits under sub-\r\nsection (2) of section 34; \r\n(g) cancel development agreement; \r\n(h) review and direct actions on annual reports submitted by SEZ Authorities; \r\n(i) annually review the implementation of this Act with a view to improving \r\npolicies relating to SEZs; and \r\n(j) take any other steps it deems appropriate in order to advance the objectives of \r\nthis Act. \r\n7. Approvals Committee.—(1) There shall be an Approvals Committee that shall be chaired by the \r\nChairman of the BOI and shall consist of the following, namely:― \r\n(i) executive heads of the Provincial investment boards or companies or agencies, \r\nand where these do not exist a representative equivalent to a Provincial \r\nSecretary designated by the concerned Province; \r\n \r\n \r\n___________________________________________________________________________________ \r\n1Subs. by Act No. XXXIV of 2026, s. 3. \r\n \r\nPage 8 of 22 \r\n \r\n(ii) representatives of the Ministries of Finance, Commerce, Industries, Production \r\nand States and Frontier Regions Division not below the level of an Additional \r\nSecretary to the Government; \r\n \r\n(iii) private sector representatives representing different sectors and regions to be \r\nnotified and two co-opted members by special invitation with a three-year term \r\nextendable at the discretion of the BOA; and \r\n \r\n(iv) with approval of BOA, co-opted members from concerned Federal and \r\nProvincial Governments for specific cases. \r\n \r\n(2) The Approvals Committee shall exercise all such powers and responsibilities as are \r\ndelegated to it by the BOA, subject to such conditions as it may deem fit. \r\n \r\n(3) The BOA may delegate all or any of its remaining powers and responsibilities to the \r\nApprovals Committee. \r\n \r\n(4) A decision taken by the Approvals Committee shall be submitted to BOA at its meetings or \r\nby circulation for approval. \r\n \r\n(5) The BOA may, at any time, exercise any responsibility or any power which it has delegated \r\nto the Approvals Committee. \r\n \r\n \r\nshall— \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n8. Functions of BOI.—(1) The BOI as the Secretariat of BOA and Approvals Committee \r\n \r\n(a) be responsible for the co-ordination of all activities pertaining to SEZs, \r\ndevelopers and zone enterprises, including the preparation of all documentation \r\nfor consideration by the BOA and for ensuring the implementation of all \r\ndecisions of the BOA; \r\n \r\n(b) process all zone applications submitted by SEZ Authorities for consideration of \r\nBOA; \r\n \r\n(c) process all applications for additional incentives in accordance with sub section \r\n(2) of section 34; \r\n \r\n(d) review all development agreements proposed by SEZ Authorities; \r\n \r\n(e) be responsible for the international and domestic promotion of investments into \r\nSEZs; and \r\n(f) facilitate the interaction of developers and zone enterprises with all other \r\nFederal, Provincial and other governmental authorities as well as with \r\ninternational financial and developmental institutions. \r\n \r\n(2) 1[ * * * * * * *] \r\n(3) BOI shall support and facilitate the SEZ Authorities, if requested. \r\n \r\n1Omitted by Act No. XXXIV of 2026, s. 4. \r\n \r\n \r\nPage 9 of 22 \r\n \r\n9. Responsibilities of Provincial investment promotion authorities .— 1[*] A Provincial \r\ninvestment promotion authority shall be responsible within its Province of jurisdiction for the \r\nfollowing, namely:― \r\n(a) to assist in the operation of the 1[*] SEZ Authorities; \r\n(b) to be the focal entity responsible for the investment promotion; \r\n(c) may assist the SEZ Authorities and the developers in acquisition and other land \r\nrelated matters including but not limited to necessary easement issues; \r\n(d) to ensure infrastructure development linkages between authorities within the \r\nSEZ; and outside the SEZ; \r\n(e) to facilitate the developers and zone enterprises in dealing with all Provincial \r\ngovernmental authorities for smooth and systematic resolution of issues as and \r\nwhen they arise; and \r\n(f) to facilitate the developers and enterprises in complying with environmental \r\nregimes and social development. \r\n10. SEZ Authority.—(1) There shall be established for each Province, an authority to be \r\nknown as the SEZ Authority of that Province. 1[The Federal Government shall, by notification in the \r\nofficial Gazette, establish a Federal SEZ Authority for the Islamabad Capital Territory and SEZs \r\nestablished by the Federal Government. The Federal SEZ Authority shall only oversee the relevant \r\nSEZ to be established by the Federal Government on land held in the name of the Government of \r\nPakistan or established on provincial land after consent of the respective provincial government.] \r\n(2) Every SEZ Authority shall be a body corporate by the name aforesaid, having perpetual \r\nsuccession and a common seal, with a power, subject to the provisions of this Act and any regulations, \r\nto acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by \r\nthe said name, be entitled to sue and to be sued. \r\n(3) Each 1[Provincial] SEZ Authority shall consist of— \r\n(a) a Chairperson, who shall be the Chief Minister of the concerned Province or a \r\nperson appointed by the Chief Minister; \r\n(b) a Vice-Chairperson, who may be the Minister or the Advisor in charge of the \r\ninvestment department and where no such department exists, any member of \r\nthe Provincial cabinet nominated by the Chief Minister of the concerned \r\nProvince; \r\n(c) a Chief Executive Officer who may be appointed by the Chief Minister of the \r\nProvince concerned and may be the Secretary of the SEZ Authority; \r\n(d) Secretary of the Provincial investment department and where no such \r\ndepartment exists, the executive head of the Provincial investment promotion \r\nauthority by whatever name it exists; \r\n \r\n1Omitted, added and ins. by Act No. XXXIV of 2026, ss.5 and 6. \r\n \r\nPage 10 of 22 \r\n \r\n \r\n(e) Secretaries of the Provincial industries, finance, commerce, investment, works \r\nand services, livestock, agriculture and planning and development departments; \r\n(f) two members to be appointed by the Chief Minister of the Province concerned \r\nand two other members to be appointed by the BOA; and \r\n(g) a member to be appointed by the concerned Chamber of Commerce and \r\nIndustry where the SEZ is proposed. If there is no Chamber of Commerce then \r\na member of the Chamber of Commerce of that respective area to be \r\nappointed. \r\n1[(3A) The Federal SEZ Authority shall consist of,__ \r\n(a) A Chairperson, who may be the M inister in char ge Chairman of the Board of \r\nInvestment; \r\n(b) Secretary, Board of Investment, (who shall chair the Federal SEZ Authority in \r\nabsence of the Chairperson), act as Vice President; \r\n(c) A Chief Executive Officer who ma y be appo inted by the Prime Minister and \r\nshall be the Secretary of the Federal SEZ Authority; \r\n(d) Federal Secretaries of Industries & Production, Planning Development and \r\nSpecial Initiatives, Commerce, Finance (Ma in), Inter Provincial Coordination, \r\nPower, Energy or their nominee not below BPS-21; \r\n(e) Two (2) private member s to be appointed by the Federal Government on such \r\nterms and condition s as it may dete rmine. The member s shall be of kno wn \r\nintegrity and competence with at least ten year of experience in the field of law, \r\neconomics, technology or finance , coupled with experience of the indu strial \r\nsection; \r\n(f) President of the Federation of Pakistan Chambers of Comme rce and Industry \r\n(FPCCI); and \r\n(g) Member of each Province appoin ted by the Ch ief Mini ster of the respective \r\nprovince, wh ich member shall be of kno wn integrity and competence with at \r\nleast ten years of exper ience in the f ield of law, economics, technolo gy or \r\nfinance, coupled with experience of the industrial section.] \r\n(4) Each SEZ Authority may acquire land 1[* * *] in accordance with the Land Acquisition \r\nAct, 1894 (I of 1894). \r\n(5) Each SEZ Authority shall, subject to the approval of BOA, establish its rules and procedures. \r\n(6) Where the Chairperson is not present, the Vice Chairperson shall chair the SEZ \r\nAuthority’s meeting. \r\n \r\n1Ins. and omitted by Act No. XXXIV of 2026, s.6. \r\n \r\n \r\nPage 11 of 22 \r\n \r\n11. Requirements for all zone applications. —(1) Every zone application submitted for \r\napproval to the BOA shall identify the type of SEZ proposed and include— \r\n(a) a basic business concept or model for the proposed SEZ to be submitted; \r\n(b) parameters for zone admission criteria; and \r\n(c) a preliminary zone development plan which shall— \r\n(i) define the geographic boundaries of the proposed SEZ; \r\n(ii) set out the basic infrastructure development requirements, both \r\ninside and outside the proposed SEZ, necessary for the proper \r\nfunctioning of the proposed SEZ; \r\n(iii) set out the land requirements of the proposed SEZ; \r\n(iv) set out the manner in which land required shall be procure d, including \r\nspecifically whether land will need to be acquired under the Land \r\nAcquisition Act, 1894 (I of 1894); and \r\n(v) set out what criteria shall be applicable to the admission of zone \r\nenterprises into that SEZ. \r\n(2) The zone application shall be submitted along with a proposed development agreement \r\nunder section 14 and the criteria on which a developer shall be selected for that SEZ. \r\n12. Approval of zone applications.—1[(1) Where a SEZ is proposed to be e stablished by a \r\nProvince, the zone application shall be submitted to the BOA by the SEZ Authority of that Province. Where \r\na SEZ is proposed to be established by the Federal Government, the zone application shall be submitted to \r\nthe BOA by the Federal SEZ Authority.] \r\n(2) The BOA shall review every zone application submitted to it by the SEZ Authority to ensure \r\nthat the proposal is in conformity with the provisions of this Act, any applicable regulations made \r\nunder this Act and other applicable provisions of law. \r\n13. Approval of development agreements. —(1) If a zone application is approved by the \r\nBOA, the concerned SEZ Authority shall select 1[one or more developers] in accordance with any \r\napplicable zone regulations except as provided in s ection 4. Such zone regulations shall req uire that \r\nenvisaged development agreements be notified for competitive bidding 1[:] \r\n1[Provided that more than one developer may only be selected where the area of the zone is \r\nmore than one thousand acres and each developer is allotted not less than five hundred acres.] \r\n \r\n(2) After negotiating a development agreement, the concerned SEZ Authority shall submit a \r\nfinal agreement for approval to the BOA. \r\n \r\n \r\n \r\n \r\n1Subs. and added by Act No. XXXIV of 2026, ss.7 and 8. \r\n \r\nPage 12 of 22 \r\n \r\n(3) There shall be a provisional approval by the concerned SEZ Authority subject to fulfillment \r\nof all such conditions necessary for final approval according to laid down criteria. \r\n \r\n(4) The BOA may condition its approval of a development agreement on the fulfillment of such \r\nconditions as it deems fit and according to the laid down criteria. \r\n \r\n(5) After final approval, the development agreement shall be signed 1[*] by the Secretary of \r\nthe BOA on behalf of the Federation of Pakistan and by the chief executive officer of the concerned \r\nSEZ Authority 1[and the authorized representative of the Developer]. \r\n \r\n(6) If the BOA does not approve a development agreement submitted to it, the concerned SEZ \r\nAuthority, that submitted the development agreement, may resubmit the development agreement after \r\neither renegotiating the terms of the proposed development agreement with the developer concerned \r\nor after reaching agreement with a different developer selected in accordance with the applicable zone \r\nregulations. \r\n \r\n(7) In case of an y grievances, a developer may approach BOA directly or through the SEZ \r\nAuthority and BOA shall have the authority to consider, modify or set aside any decision. \r\n14. Simultaneous approval of zone application and development agreement.― The SEZ \r\nAuthority may simultaneously submit both a zone application and a development agreement to the \r\nBOA for provisional approval, provided that— \r\n \r\n(a) the developer in question either owns all immovable property in the proposed \r\nSEZ or holds leasehold rights; and \r\n \r\n(b) no additional incentives shall be granted by the SEZ Authority under sub-\r\nsection (2) of section 34. \r\n15. Approval of existing zones. —(1) Any existing zone may apply to the SEZ Auth ority \r\n1[of the territory or Province] in which it is located for submission of a zone application on its behalf. \r\n \r\n2[(2) From the commencement of the Special Economic Zones (Amendment) Ordinance, 2015 \r\n(XVIII of 2015), only new entrants and new industries that are setup after the establishment of the SEZ \r\nmay avail SEZ enterprise benefits under this Act.] \r\n (3) 2[* * * * * * *] \r\n(4) 2[* * * * * * *] \r\n (5) 2[* * * * * * *] \r\n \r\n16 Zone approval criteria.― (1) 2[* * * * * * *] \r\n \r\n2[(1)] unless otherwise decided by the BOA, the following provisions shall form part of the \r\nzone approval criteria, namely:― \r\n(a) a SEZ shall have a minimum size of at least fifty acres: \r\n \r\n \r\n1Omitted, subs. and ins. by Act No. XXXIV of 2026, ss.8-9. \r\n2Subs. omitted and renumbered by Act No. XLV of 2016, s.3 and 4. \r\n \r\nPage 13 of 22 \r\n \r\n(b) not more than thirty percent of the entire area of a SEZ shall be used for \r\namenities (including commercial areas), infrastructure and residential or labour \r\ncolonies; \r\n \r\n(c) public-owned land, if used for SEZs shall be leased for a period of 1[up to] \r\nfifty years extendable for further period as laid down by the competent forum; \r\n \r\n(d) Developers must undertake to comply with all environmental, labour and other \r\napplicable legislation in force in Pakistan; \r\n \r\n(e) zone enterprises must begin construction of facilities within six months and \r\nassume regular business operations within twenty-four months of their \r\napproval as zone enterprises and after receipt of all required licences and \r\npermits; \r\n \r\n(f) within six months the developer is bound to take all necessary approvals to start \r\nconstruction activities failing which that title will be withdrawn and agreement \r\nwill be terminated and land will be returned; \r\n \r\n(g) title to land may be registered in the name of zone enterprises only after they \r\nhave performed business operations in the SEZ concerned for at least six \r\nmonths; \r\n(h) there shall be no real estate activities in the zone as this would result in \r\nwithdrawl of the title of land and termination of the agreement; and \r\n(i) articles of association of the zone developer shall be approved by the \r\n1[concerned] SEZ Authority in accordance with the regulatory framework \r\nprescribed by the BOA. \r\n2[(2)] In case the SEZ Authority is satisfied with the justification put forward for delay in \r\nperformance of a responsibility by an enterprise in a SEZ, it may give reasonable relaxation in time \r\nframe for performance of the particular responsibility. \r\n \r\n \r\nto,— \r\n17. Functions and powers of SEZ Authorities.― The SEZ Authority shall be responsible \r\n \r\n(a) prepare zone applications in accordance with this Act and applicable zone \r\nregulations; \r\n \r\n(b) select developers in accordance with the provisions of this Act and the \r\napplicable zone regulations; \r\n \r\n(c) negotiate development agreements in accordance with the provisions of this Act \r\nand applicable zone regulations; \r\n \r\n(d) assist developers upon award of a development in acquiring land and accessing \r\npublic utilities in accordance with the zone development plan; \r\n \r\n(e) prepare zone regulations for particular SEZ; \r\n \r\n \r\n1Subs. by Act No. XXXIV of 2026, s.10. \r\n2Renumbered by Act No. XLV of 2016, s.4. \r\n \r\nPage 14 of 22 \r\n \r\n(f) co-ordinate with Federal and Provincial authorities and ensure the building of \r\ninfrastructure outside the boundaries of SEZ; \r\n \r\n(g) serve as liaisons and facilitating agencies in accordance with the provisions of \r\nsection 29; \r\n \r\n(h) facilitate the availability of public utilities to zone enterprises in accordance \r\nwith the zone development plan; \r\n \r\n(i) liaise with all relevant Federal and Provincial authorities to ensure the security of \r\nSEZs; \r\n \r\n(j) monitor the proper implementation of streamlined administrative procedures in \r\nSEZs under section 28; \r\n \r\n(k) monitor the compliance of developers with zone regulations as well as the \r\ncompliance of developers with their obligations under development agreements \r\nand suspend development agreements, in case of violation of terms of \r\ndevelopment agreement by the developer, pending final decision by BOA. \r\n \r\n(l) monitor the compliance of zone enterprises with their obligations under zone \r\nregulations; \r\n \r\n(m) review of the activities of the developers and zone enterprises regularly but not \r\nless than once a year; and \r\n \r\n(n) report bi-annually to the BOA with respect to SEZs in the Provinces 1[or territories] \r\nconcerned. \r\n \r\n18. Suspension and removal of members of SEZ Authorities.—(1) The Chief Minister may \r\norder removal of either the Chairperson, if so appointed by him, or any member of the Provincial SEZ \r\nAuthority. \r\n \r\n(2) If either the Chairperson or any member of a Provincial SEZ Authority is removed, their \r\nreplacement shall be appointed by the Chief Minister. \r\n \r\n19. Eligibility as developer .― Unless otherwise decided by the BOA with respect to a \r\nparticular SEZ or type of SEZ, any entity shall be eligible as a developer which is incorporated under the \r\nlaws of Pakistan. \r\n \r\n20. Responsibilities of developers.—(1) With the exception of existing zones which have been \r\napproved as SEZs, all SEZs shall be developed and operated by developers within a specified time period \r\nas mentioned in the development agreement. \r\n \r\n(2) All developers shall— \r\n \r\n(i) implement their zone development plans in accordance with the terms of their \r\ndevelopment agreement; \r\n \r\n(ii) approve zone enterprises and allot land to such enterprises in accordance with \r\nthe applicable zone admission criteria, zone regulations and the terms of the \r\n____________________________________________________________________________________ \r\n1Ins. by Act No. XXXIV of 2026, s.11. \r\n \r\nPage 15 of 22 \r\n \r\ndevelopment agreement 1[:] \r\n1[Provided that notwithstanding anything contained to the contrary, in the case \r\nof public -private partnerships and Private sector Special Economic Zones, the \r\nAuthority shall examine and approve zone entry applications, allot land to such \r\nenterprises, and determine the price of the land so allotted in accordance with the terms \r\nof the concession agreement or, as the case may be, the development agreement.] \r\n(iii) monitor and ensure the compliance of zone enterprises with all applicable zone \r\nregulations. \r\n(3) Subject to default on the foregoing unless otherwise, the agreement shall stand terminated. \r\n21. Development agreements.—(1) Each development agreement shall include― \r\n(a) all undertakings of the developer regarding the development and operation of the \r\nSEZ concerned, with the zone development plan or business concept of proposed \r\nSEZ model as an integral part of the development agreements; and \r\n(b) all authorities conferred on the developer with respect to the SEZ concerned, \r\nincluding specifically any provisions pertaining to the developer’s authority to— \r\n(i) admit enterprises into the SEZ in accordance with the zone admission \r\ncriteria and allot land to them in accordance with agreed eligibility criteria \r\nand procedures; \r\n(ii) act as a liaison and facilitating agency between the relevant SEZ authority \r\nand zone enterprise; \r\n(iii) all financial obligations of the developer, including any obligation to make \r\npayment for the allocation of land and provision of services by public \r\nauthorities; and \r\n(iv) clear provisions regarding the responsibility of maintenance of \r\ninfrastructure and utility services. \r\n(2) A development agreement shall also include— \r\n(i) rights, protections and entitlements of the developer with respect to the SEZ \r\nconcerned, established or allowed under this Act or any other applicable law; \r\n(ii) rights, protections and entitlements of zone enterprises in the SEZ concerned \r\nestablished or allowed under this Act or any other applicable law, together \r\nwith a prescribed procedure for the invocation of such rights, protections and \r\nentitlements by the developers; \r\n(iii) provision for the settlement of disp utes, including disputes on behalf of zone \r\nenterprises through arbitrations; and \r\n(iv) rights or titles and other legal authority of the 1[*] SEZ Authorities superior \r\nto it in terms of the provisions of this Act. \r\n1[(3) ln the case of public-private partnerships and private sector Special Economic Zones, the terms of \r\nthe concession agreement executed between the relevant Provincial Author ity or comp any and the Developer \r\nshall prevail over the terms of the development agreement.] \r\n_________________________________________________________________________________ \r\n1Subs., ins. and omitted by Act No. XXXIV of 2026, ss.12 and 13. \r\n \r\nPage 16 of 22 \r\n \r\n22. Sanctions against developers.—(1) The SEZ Authority may, if it is satisfied after notice \r\nand a hearing that a developer is not acting in accordance with the terms of its development agreement or \r\nis acting in violation of applicable zone regulations or applicable legislation and has failed to rectify \r\nsuch violation despite notice to this effect, suspend the development agreement of that developer and \r\nmove for cancellation of such agreement to the BOA or impose such other penalty as may be provided \r\nunder the applicable zone regulations or the development agreement. \r\n(2) Upon receipt of an application from the 1[concerned] SEZ Authority seeking cancellation \r\nof a development agreement, the BOA shall give notice to the developer concerned, asking it to show \r\ncause why its development agreement should not be cancelled or why such lesser penalty as may be \r\nprovided under applicable zone regulations should not be imposed. \r\n(3) Pending the final decision of the BOA on a proposal for cancellation of a particular \r\ndevelopment agreement, the SEZ Authority may appoint an interim administrator or take such interim \r\nmeasures as it is necessary to do so— \r\n(a) in the public interest; or \r\n \r\n(b) to prevent any of the affairs of any SEZ being conducted in a manner detrimental \r\nto the interests of stakeholders, zone enterprises or other persons whose interest \r\nare likely to be affected or in a manner prejudicial to the interests of the SEZ. \r\n(4) Pending the final decision of the BOA, on a proposal for cancellation of a particular \r\ndevelopment agreement, the SEZ Authority may, if it is satisfied that it is necessary to secure the proper \r\nmanagement of any zone, issue directions to developers generally or to any developer in particular to \r\ncarry out such changes as are necessary to rectify the situation and the developers shall be bound to \r\ncomply with such directions. \r\n \r\n(5) Following a hearing in person, in which the developer may be represented by counsel, the \r\nBOA may impose such penalty as is provided by the applicable zone regulations or the development \r\nagreement, which may include cancellation of a development agreement or cancellation of any benefits \r\nallowed to a developer, provided that any cancellation of benefits to a developer shall be without \r\nprejudice to the rights and privileges of zone enterprises. \r\n(6) The BOA may only cancel a development agreement if it finds that— \r\n(i) the developer has violated its development agreement; and \r\n(ii) that the developer has failed to rectify such violation despite notice. \r\n (7)1[ * * * * * * *] \r\n \r\n23. SEZ committees.—(1) The BOA shall charter an SEZ Committee for each SEZ as per the \r\napplicable zone regulations. \r\n \r\n(2) The membership of a SEZ committee shall consist of representatives from the developer, BOI, \r\nProvincial investment promotion agency, SEZ Authority and concerned district Government. The \r\ndeveloper shall appoint the chairperson of the committee. \r\n \r\n(3) Each SEZ committee shall have responsibilities to administer and enforce SEZ benefits and rules \r\nas well as provide facilitation between the SEZ, its enterprises and the government with responsibilities \r\nincluding to— \r\n \r\n1Subs. and omitted by Act No. XXXIV of 2026, s.14. \r\n \r\nPage 17 of 22 \r\n \r\n(a) 1[* * * * * * *] \r\n \r\n(b) provide for certification of zone enterprises; \r\n \r\n(c) conduct oversight of enterprises; \r\n \r\n(d) enforce the building code of the SEZ; \r\n \r\n(e) coordinate between the developer and government entities and utility providers \r\nduring construction; \r\n \r\n(f) assist Zone enterprises in obtaining approvals and registrations; \r\n \r\n(g) serve as the point of contact between the zone enterprise and utility providers; and \r\n \r\n(h) facilitate between enterprises and government regulators and tax authorities. \r\n \r\n (4) SEZ Committees shall execute their responsibilities according to their standard \r\noperating procedure in accordance with zone regulations. \r\n \r\n24. Admission of zone enterprises. —(1) Enterprise shall be admitted into a SEZ by the \r\ndeveloper in accordance with applicable zone admission criteria, the zone regulations and the terms \r\nof the development agreement. \r\n \r\n(2) Any enterprise which is refused admission into a SEZ by a developer may appeal to the \r\n1[relevant SEZ Authority], which shall have the power to direct the relevant developer to allow \r\nadmission to the enterprise in question in accordance with the applicable zone regulations and \r\ndevelopment agreement. \r\n \r\n25. Sanctions against zone enterprises. —(1) The BOA shall issue zone regulations which \r\nprovide for sanctions against zone enterprises and the manner in which such sanctions may be imposed. \r\n \r\n(2) The BOA may, with respect to particular SEZs, delegate its authority under sub-section (1) \r\nto SEZ Authorities. \r\n \r\n(3) The SEZ Authority may if it is satisfied that it is necessary to do so to secure the proper \r\nmanagement of any zone enterprise, issue directions to zone enterprises generally or to any zone \r\nenterprise in particular to carry out such changes as are necessary to rectify the situation and the zone \r\nenterprise shall be bound to comply with such directions. \r\n \r\n(4) The SEZ Authority may only expel a zone enterprise from a SEZ if it finds that— \r\n \r\n(i) the zone enterprise is in violation of its obligations; and \r\n \r\n(ii) the zone enterprise has failed to rectify such violation despite notice. \r\n \r\n(5) The SEZ Authority may appoint an interim administrator or take such interim measures for \r\n \r\n1Omitted and subs. by Act No. XXXIV of 2026, ss.15 and 16.\r\n \r\nPage 18 of 22 \r\n \r\na period of not more than one month if it is satisfied that it is necessary to do so― \r\n \r\n(i) in the public interest; or \r\n \r\n(ii) to prevent any of the affairs of any SEZ being conducted in a manner, \r\ndetrimental to the interests of stakeholders, developers, zone enterprises or \r\npersons whose interests are likely to be affected or in a manner prejudicial to \r\nthe interests of the SEZ. \r\n \r\n(6) The action taken by the SEZ Authority in accordance with sub-section (5) shall be referred \r\nto BOA within seven days for ratification by BOA, The BOA shall decide the matter and issue the \r\nguidelines and instructions about operations of zone enterprise within fifteen days. \r\n \r\n26. Land regime.—(1) The Provincial Government of each Province or any concerned \r\nauthority shall nominate, for each SEZ, a sub-registrar who shall be the exclusive authority with which \r\nall documents relating to that SEZ shall be liable to be registered under this Act, zone regulations and \r\nany other applicable law. \r\n \r\n(2) Notwithstanding any other law in force , a developer may not sell, sub -lease or otherwise \r\ntransfer any rights with respect to any immovable property within a SEZ except through a duly \r\nregistered instrument. \r\n \r\n27. Public utilities and transportation links.—(1) Unless provided otherwise in a particular \r\ndevelopment agreement, it shall be the responsibility of— \r\n \r\n1[(i) the Federal and Provincial Government s to en sure, at government expense in \r\nthe ca se of SEZs established on Public land or by Public sector en tities, the \r\nprovision of r oad acce ss, all utilitie s including electrici ty, gas, \r\ntelecommunication services, and other essential facilities up to the designated \r\nzero point within one year o f the notification of the SEZ. The BOA may, on a \r\ncase by case bas is, also allow such provision at government expense for SEZs \r\nestablished by private parties; as per criteria approved by it; and] \r\n \r\n(ii) 1[* * * * * * *] \r\n \r\n(iii) each developer to ensure, within a particular SEZ, the supply of gas and electricity to \r\nall zone enterprises as well as the availability of all other public utilities required for \r\nsuch areas as envisaged in the development agreement. \r\n(2) Unless provided otherwise in a particular development agreement and notwithstanding \r\nanything to the contrary contained in the Regulation of Generation. Transmission and Distribution of \r\nElectric Power Act, 1997 (XL of 1997), each developer shall have the right to set up a captive electric \r\npower generation plant or install a hydel power generator of sufficient size to cater to the expected \r\ndemand for electricity within a particular SEZ and to sell and distribute only the excess electricity so \r\ngenerated within and outside that particular SEZ in accordance with the applicable regulations. \r\n28. Applicable operating administrative procedures.—(1) The BOA, the BOI and the SEZ \r\nAuthorities shall promote the adoption of simplified administrative procedures for SEZs and zone \r\nenterprises with the relevant Federal and Provincial authorities and agencies. Such procedures shall in \r\nparticular facilitate the— \r\n__________________________________________________________________________________ \r\n1Subs. and omitted by Act No. XXXIV of 2026, s.17. \r\n \r\nPage 19 of 22 \r\n \r\n(i) issuance of licences, permits and other approvals to zone \r\nenterprises required for their business activities; \r\n(ii) satisfaction of customs and other export or import requirements by \r\nzone enterprises; \r\n(iii) fulfillment of tax obligations by zone enterprises; and \r\n(iv) authorization of electronic communications and Modes of e-governance. \r\n(2) Procedures under sub-section (1) shall endeavour to— \r\n(i) substitute notifications and registrations for licence, permit and other \r\napproval requirements; and \r\n(ii) authorize approvals on a no objection basis within a specified period. \r\n29. Assistance by the BOI and SEZ Authorities. —(1) The BOI shall act as a liaison and \r\nfacilitating agency between,— \r\n(i) all Federal Ministries, authorities and agencies; and \r\n(ii) SEZ Authorities, developers and zone enterprises. \r\n(2) The BOI shall act as a one stop shop in its responsibilities under sub-section (1). \r\n(3) The SEZ Authorities shall act as a liaison and facilitating agency between— \r\n(i) all departments, authorities and agencies of the relevant Province 1[or \r\nterritory], including all local government and municipal authorities and \r\nagencies; and \r\n(ii) developers and zone enterprises. \r\n(4) To the extent practicable, SEZ Authorities in the Provinces or in any other area shall seek to \r\nenter into administrative arrangements with tax, customs, labour and other authorities u nder which SEZ \r\nauthorities may exercise certain administrative functions on behalf of such authorities, which \r\narrangements may include a secondment of officials with decision-making power from such authorities to \r\nSEZ Authorities. \r\n(5) All Federal and Provincial Ministries and departments, authorities and other agencies shall \r\nfully co-operate with the BOI and SEZ Authorities in facilitating the activities of developers and zone \r\nenterprises and carry out the requisite functions within the time frame stipulated under the regulatory \r\nframework prescribed by BOA for the implementation of this Act. \r\n30. Labour laws.― All labour and employment laws of Pakistan shall be applicable to SEZ in \r\nthe same manner as they are applicable to all territories within Pakistan. \r\n31. Employment of key persons.―Notwithstanding anything contained in any other law, the \r\nBOA may issue special rules for the employment by zone enterprises of key managerial and technical \r\npersons who are not citizens of Pakistan, relating to the terms and conditions of their contracts as well as \r\nwith respect to the issuance of visas, temporary residence permits and temporary work permits for such \r\nkey persons and their dependents provided further that such rules shall only be issued after consultation \r\nwith— \r\n \r\n1Ins. by Act No. XXXIV of 2026, s.18. \r\n \r\nPage 20 of 22 \r\n \r\n(i) the Ministry of Interior; \r\n \r\n(ii) the Ministry of Foreign Affairs; and \r\n \r\n(iii) such other Ministry or Department as the BOA may direct. \r\n \r\n32. Security.—(1) Each Province or any concerned authority shall be responsible for providing \r\nsecurity for the protection of SEZs. \r\n \r\n(2) Pending the creation of a special police force, each Province or any concerned authority \r\nshall designate special police units responsible for the protection of SEZs within that area. \r\n \r\n33. 1[* * * * * * *] \r\n \r\n34. Incentives for SEZs.—(1) On execution of development agreements, the developer of the \r\nparticular SEZ as well as all zone enterprises in that SEZ shall be entitled to benefits set out in sections \r\n36 and 37 respectively. \r\n \r\n(2) With the objective of promoting hi -tech industries or particular regions, the BOA may \r\ngrant additional benefits to a particular category of SEZs, zone enterprise, regions or sectors \r\nprovided that— \r\n \r\n(i) such additional benefits may only be grant ed if the BOA finds them to be \r\njustified on the basis of an economic impact assessment; \r\n(ii) such additional benefits, if granted conditionally, may be liable to be forfeited \r\nwith retroactive effect if it is finally determined that a developer or zone \r\nenterprise has failed to comply with the conditions prescribed for the additional \r\nbenefits in question; and \r\n(iii) the BOA shall make the economic impact assessment of a SEZ within five years \r\nfrom the date the agreement is signed and within the first year of the operation \r\nof an enterprise. \r\n \r\n2[(iv) such additional benefits g ranted by BOA to the relevant h i-tech indu stry or \r\nparticular region shall be available to any other SEZs established or to be \r\nestablished with the relevant hi -tech industry or established or to be e stablished \r\nin the particular region.] \r\n(3) Any additional benefits granted by the BOA— \r\n(i) shall be deemed to be included in the relevant 2[developer] agreement; and \r\n(ii) shall become effective on such conditions as the BOA may stipulate. \r\n \r\n(4) Nothing in this Act shall be construed to limit the authority of any Federal, Provincial or \r\nLocal Government authority to grant such additional benefits to developers and zone enterprises as \r\nare within the scope of their respective statutory powers. \r\n \r\n \r\n \r\n \r\n1Omitted by Act No. XLV of 2016, s.5. \r\n2Added and subs. by Act No. XXXIV of 2026, s.19.\r\n \r\nPage 21 of 22 \r\n \r\n35. Protection of benefits. —(1) All incentives under this Act shall be additional to all \r\nincentives, benefits and protections which may be applicable to developers and zone enterprises \r\nunder generally applicable legislation and international agreements of Pakistan. \r\n \r\n(2) These benefits shall not be withdrawn prematurely and any change therein shall be to the \r\nadvantage of the developer of the SEZ or the enterprise. \r\n \r\n36. Benefits for developers.―Unless otherwise provided in a development agreement, \r\ndevelopers shall be entitled to the following benefits, namely:― \r\n \r\n1[(a) one time exemption from all custom -duties and taxes on plant and machinery \r\nimported into Pakistan except the items listed under Chapter 87 of the Pakistan \r\nCustoms Tariff, for the setting up of an SEZ subject to verification by the BOI;] \r\n \r\n (b) 1[exemption] from all taxes on income accruable in relation to the development \r\nand operation of the SEZ for a period of 1[five] years, starting from the date of \r\nsigning of the development agreement. \r\n \r\n37. Benefits for zone enterprises.― All zone enterprises shall be entitled to the following \r\nbenefits, namely:— \r\n \r\n1[(a) one time exemption from customs-duties and taxes on import of plant, \r\nmachinery into SEZ except items listed under Chapter 87 of the Pakistan \r\nCustoms Tariff, for installation in that zone enterprise subject to verification by \r\nthe BOI;] \r\n2[(b) exemption from all taxes on inco me for enterprise s commencing commercial \r\nproduction for the next ten years or until the th irtieth day of June 2035, \r\nwhichever is earlier.] \r\n2[38. Establishment of Special Economic Zone Appellate Tribunal .__ (1) A Special \r\nEconomic Zone Appellate Tribunal shall be established , and no court shall take cognizance of any \r\nlegal dispute under this Act or the rules or regulations made thereunder to which t he jurisdiction of the \r\nSpecial Economic Zone Appellate Tribunal extends. \r\n(2) Notwithstanding anything contained therein, the Federal Government may, by notification \r\nin the official Gazette, designate an existing tribunal established under any other law to exercise the \r\npowers and perform the functions of the Special Economic Zone Appellate Tribunal under this Act. \r\n(3) The Tribunal constituted under sub -section (1) shall have exclusive jurisdiction to \r\ndetermine all matters pertaining to this Act, any rules or regulations made pursuant to this Act and the \r\noperation and implementation of this Act or such rules or regulations by any person or body \r\nempowered by, under or by virtue of this Act or such rule or regulation, including without limiting the \r\ngenerality of the foregoing, the exercise of powers and functions by BOA, Approval Committee, BOI, \r\nSEZ Authority, SEZ Committee or an interim administrator appointed by an SEZ Authority: \r\nProvided that the foregoing shall not include service matters pertaining to civ il servants as \r\ndefined in the Civil Servants Act, 1973 (LXXI of 1973). \r\n__________________________________________________________________________________________ \r\n1Subs. by Act No. XLV of 2016, ss. 6 and 7. \r\n2Subs. by Act No. XXXIV of 2026, ss. 19-20.\r\n \r\nPage 22 of 22 \r\n \r\n(4) T he Tribunal shall consist of a chairman and two other members. The chairman and \r\nmembers shall be appointed by the Federal Government on such terms and conditions as it may \r\ndetermine. \r\n(5) The Chairman of the Tribunal shall be an advocate of known integrity and competence with \r\nat least twenty years experience in commercial matters and the m embers of the tribunal shall be \r\npersons of known integrity and having professional experience of at least ten years in the field of law, \r\neconomics, technology or finance, coupled with experience in the industrial section. \r\n(6) The Chairman and m embers of the Tribunal constituted under sub -section (1) shall hold \r\noffice for a period of three years and shall be eligible for reappointm ent for a similar term or terms or \r\nuntil attaining the age of sixty -eight years in the case of the c hairman and si xty-two years in the case \r\nof a member, whichever is earlier. \r\n(7) The Tribunal shall decide a matter expeditiously but not later than three months of its filing \r\nbefore the tribunal. \r\nExplanation.— It is clarified that the timeframe for rendering a decision within three months is \r\nmandatory and not directory. \r\n(8) The Tribunal for the purpose of deciding an appeal be deem ed to be a civil c ourt and shall \r\nhave all the powers vested in such a c ourt under the Code of Civil P rocedure, 1908 (Act V of 1908) \r\nand judgments of such t ribunal shall be deemed to be decree of a civil c ourt issued under Act V of \r\n1908. \r\n(9) Any person aggr ieved by an order, judgment or decree of the Tribunal under this section \r\nmay prefer an appeal to the Supreme Court of Pakistan within sixty days.] \r\n39. Alternative dispute resolution procedures. — (1) Development agreements may provide \r\nfor the resolution of disputes through arbitration between developers and any Federal, Provincial or \r\nLocal Governmental authority or agency arising out of, or relating to, such development agreement. \r\n \r\n(2) Development agreements may authorize developers to pursue and defend the rights of zone \r\nenterprises within a particular special economic zone through arbitration. \r\n \r\n(3) Zone regulations may provide for the resolution of disputes between zone enterprises in the \r\nsame SEZ or between zone enterprises and developers through arbitration and mediation in accordance \r\nwith procedures approved by the BOA for this purpose. \r\n \r\n 40. Rules and regulations for implementation of this Act.― 1[(1)] The BOI, in consultation \r\nwith SEZ Authorities and with approval of the BOA, may make rules and regulations as deemed \r\nnecessary for implementation and to carry out purposes of this Act. \r\n1[(2) In case of any conflict between this Act and any rules and re gulations made under this \r\nAct, the provisions of this Act shall prevail.] \r\n \r\n \r\n1Designated as, added by Act No. XXXIV of 2026, s. 21. \r\n RGN Dated: 11-06-2026", "passage_offset_convention": "zero-based Unicode code points and UTF8 bytes; end exclusive", "passages": [ { "passage_id": "law:pk-code-06d022f693ea5049:sha256:2a5a98e0ceeccedccbe77a7ddd64ae75305c549dc8556d2224802396eae5a81b:chars-0-1715:f5a1ed60d0df1d22c817fc2487e4430d8d7ff2e0b56b0d7bddc7381cee63e838", "character_start": 0, "character_end": 1715, "utf8_byte_start": 0, "utf8_byte_end": 1715, "passage_sha256": "f5a1ed60d0df1d22c817fc2487e4430d8d7ff2e0b56b0d7bddc7381cee63e838", 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