Special Technology Zones Authority Act, 2021

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THE SPECIAL TECHNOLOGY ZONES AUTHORITY ACT, 2021 
 
 
 
                                                           CONTENTS 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Establishment of the Authority 
4.  Powers of the Authority 
5.  Functions of the Authority 
6.  Board 
7.  Budget, finance and audit 
8.  Grants 
9.  Funds 
10. Bank accounts 
11.  Approvals Committee 
12.  Functions and Responsibilities of the Approvals Committee 
13.  Criteria for approval of zones 
I4.  Licensing of zone enterprises and zone developers 
15.  Sanctions against zone enterprises and zone developers 
16.  Land regime 

 
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I7.  Public utilities and other facilities 
18.  Incentives for zones 
19.  Protection of incentives 
20.  Exemptions and Incentives for the Authority and for the zone developers 
21.  Exemptions and Incentives for zone enterprises 
22.  Alternate dispute resolution mechanism 
23.  Cognizance of legal disputes 
24.  Appeals to Special Technology Zones Appellate Tribunals 
25.  Appeal to Supreme Court 
26.  Appointment and Powers of Administrator 
27.  Powers to make rules 
28.  Powers to make regulations 
29.  Annual report 
30.  Delegation of powers 
31.  Recruitment 
32.  Employee of the Authority to be public servants 
33.  Assistance from agencies 
34.  Public Sector and State-Owned Enterprises Investments in zones 
35.  Employment of Key Persons 
36.  Indemnity 
37.  Sums payable to the Authority to be recoverable as land revenue 
38.  Act to override other laws 
39.  Jurisdiction Barred 
 
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40.  Removal of difficulties 
41.  Repeal and savings 
  
 
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THE SPECIAL TECHNOLOGY ZONES AUTHORITY ACT, 2021 
 
ACT NO. XVII OF 2021 
[4th October, 2021] 
 
An Act to ensure the development of scientific and technological eco-system through development of 
zones to accelerate technology development in the country 
 
WHEREAS it is expedient to provide institutional and legislative support for the technology sector 
with internationally competitive and export oriented structures and e co-systems, to attract foreign direct 
investment, develop collaboration eco-system connecting academia, research and technology industry, to 
initiate innovation in production system and products, to increase the standards and quality of technology 
goods and services, to increase productivity and decrease the costs of production through high -tech 
interventions, intensive innovation and futuristic entrepreneurship, to enable job creation, to  
commercialise technological knowledge and to provide for matters connected  therewith or inci dental 
thereto; 
 
It is hereby enacted as follows:___ 
 
1. Short title, extent and commencement.___(1) This Act shall be called the Special Technology 
Zones Authority Act, 2021. 
 
(2) it extends to the whole of Pakistan. 
 
(3) It shall come into force at once. 
 
2. Definitions.—In this Act, unless the context otherwise requires,___ 
 
(a)  “Administrator” means the Administrator as described under section 26; 
 
(b)  “Authority” means the Special Technology Zones Authority established under 
section 3; 
 
(c)  “Board” means the Board of Governors constituted under section 6; 
 
(d)  “Chairperson” means the Chairperson of the Authority appointed by the Prime 
Minister, pursuant to the p rovisions of this Act, who is entrusted with whole or 
substantially whole of the powers of the management of affairs of the Authority in 
accordance with the Act; 
 
(e)  “Capital Goods” means the goods including but not limited to materials, plant, 
machinery, hardware, equipment and software, devices, instruments, accessories, 
attachments, building materials , materials and any other equipm ent required to 
perform functions of the Authority, zones, zone developers and zone enterprises, 
whether or not manufactured locally, for use in the zones, set up under the Special 
Technology Zones Authority Act, 202l; 
 
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(f)  “co-zone developer” means a Partner of the zone developer for the establishment, 
development, operation or management of zone; 
 
(g)  “Division Concerned” means the Cabinet Division; 
 
(h)  “Development Agreement” means a duly approved agreement between Authority 
and a zone developer, agreed to and endorsed by the Approvals Committee that 
authorizes zone developer to develop and establish a zone or a part thereof; 
 
(i)  “Master Plan” means an overarching planning document providing conceptual, 
spatial, landscape, infrastructure, facilities etc. plan, which is used to structure the 
land and development of infrastructure and facilities for facilitating the smooth 
functioning of the zones; 
 
(j)  “Member” means Member of the Authority; 
 
(k)  “One Window Facility” means a physical or an information and communication 
technology (ICT) facility, comprising of relevant entities of Federal, Provincial or 
Local Governments, for facilitation of the zone developer and zone enterprises to 
lodge standardized information and documents with a singl e-entry point to fulfill 
the requirements under the Act, rules or regulations including the establishment, 
development, execution, operations, functioning and management of zones; 
 
(l)  “Person” includes any registered association of persons, consortium, a body 
corporate formed or incorporated by or under any law in force, company, 
corporation, society, modaraba, Real Estate Investment Trust (REIT), Government, 
trust, partnership, or any juridical personality and includes the zone developer and 
zone enterprise; 
 
(m)  “Prescribed” means prescribed by rules or regulations made and  notified under 
this Act; 
 
(n)  “Regulations” means regulations prescribed under this Act; 
 
(o)  “Research and Development ” includes regular activities carried out with the 
purpose of obtaining new knowledge that shall enable the development of science 
and technology or creating new equipment, systems, products, services, processes, 
applications, and tools etc., using the available information and resources, including 
training and development, software production or improving those that are 
available; 
 
(p)  “Rules” means rules prescribed under this Act; 
 
(q)  “Special Technology Zones Appellate Tribunal” means the Special Technology 
Zones Appellate Tribunal constituted under this Act; 
 
 
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(r)  “Technology Sector” includes one or more technology sectors  prescribed by the 
Authority under the rules; 
 
(s)  “zone developer” means a public, private or a public -private Person responsible 
for development, operation or management of the whole, or a part of the whole 
special technology zone, and licensed by the Authority as such, and includes a co-
zone developer; 
 
(t)  “zone enterprise” means any public, private, or public-private Person developing, 
operating and managing a technological enterprise within the zone and licensed as 
such by the Authority; 
 
(u)  “zone” means a particular type or class of zone, which ma y be ge ographical or 
virtual, new or existing or expansion of an existing zone, as approved and notified 
by the Authority under the ru les, including, but not limited to special technology 
zones, information technology parks, high -tech industrial areas, software 
technology parks, hardware technology parks, technology exp ort zones, free 
technology zones, science and technology parks, information technology zones, 
science and technology zones, R&D zones, opportunity z ones, innovation zones, 
technology development zones, knowledge parks, smart cities, knowledge cities, 
technology incubation zones or any sector z ones, which are developed for the 
development, promotion and proliferation of technology, particularly all the latest 
cutting edge technologies and may require technological intervention such as 
biotech, chemical techn ologies, agritech, fintech, robotics, nanotech, edtech, etc. 
and other zones with any combination or combinations of the aforesaid fields. 
 
3. Establishment of the Authority. ___(1) On the commencement of this Act, there shall stand 
established an Authority  to be called the Special Technology Zones Authority in accordance with the 
provisions of this Act. 
 
(2) The Authority shall comprise of the Chairperson and up to eight (8) Members to be appointed 
in accordance with the provisions of this Act: 
 
Provided that the Chairperson with the consent of the Board may increase or decrease the number 
of Members, from time to time, as may be considered appropriate. 
 
(3) The Chairperson shall be appointed by the Prime Minister of Pakistan for a period of thre e 
years and shall be eligible for re-appointment for one or more similar terms. 
 
(4) The Members shall be appointed and removed in accordance with the regulations. 
 
(5) The Chairperson shall pref erably be from the private sector and shall be eligible for such 
remunerations and benefits as determined by the Prime Minister. 
 
(6) The Chairperson of the Authority may resign from his office by writing in his hand addressed 
to the Prime Minister, or may be removed from his office if, on an inquiry b y the Prime Minister, he is 
 
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found unable to perform the functions of his office because of mental or physical disability or he is found 
guilty by a court of any serious crime of moral turpitude. 
 
(7) The Authority may create, sanction and approve posts, fr om time to  time as per regulations, 
and prescribe by regulations the qualifications,  experience and terms and conditions for appointment of 
the Chairperson, Members, Executive Directors and other officers and staff of the Authority. 
 
(8) The Authority shall meet at such time and place and in such manner, as may be prescribed by 
regulations. 
 
(i)  Three Members shall constitute a quorum for meetings of the  Authority requiring 
a decision by the Authority: 
 
Provided that until regulations are mad e in this behalf, such meeting s shall be convened by the 
Chairperson. 
 
(9) No act or proceeding of the Authority shall be invalid by reason only of the existence of a 
vacancy in, or defect in, the constitution of the Authority. 
 
(10) The powers and functio ns of the Authority as provided in the Act shall be exercised in the 
name of the Authority by the Authority, comprising of Chairperson and the Members, which shall ac t 
through the Chairperson who shall be the chief executive of the Authority. In performance of his functions 
under the Act, the Chairperson may act either directly or through the Members. 
 
(11) The principal office of the Authority shall be in Islamabad and it may set up offices at such 
place or places within or outside Pakistan as may be required. 
 
(12) The Authority shall be a body corporate having perpetual succession and a common seal, with 
power, to purc hase, acquire, sell, lease, sub -lease, sub-let, license and hold moveable and immovable 
property, and shall by said name sue and be sued. 
 
(13) The Authority shall have the power to constitute as many committees, councils and 
associations and establish companies, nationally and internationally, to achieve its goals, as it may deem 
fit. 
 
4. Powers of the Authority. ___(1) Subject to the provisions of this Act, the Authority may take 
such measures and exercise such powers as may be required for performance of its functions. 
 
(2) Without prejudice to the generality of the powers conferred by  sub-section (1), the Authority 
shall have exclusive power and authority— 
 
(a)  for planning, policy formulation, execution, monitoring and evaluation of zones 
which may be assigned to it, approved by it, notified by it or developed by it from 
time to time; 
 
(b)  to approve and notify zones in accordance with the rules or regulations; 
 
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(c)  for establishment, development, implementation, operations,  management and 
functioning of zones; 
 
(d)  to make or cause to make arrangements for provision of security, utilities, roads, 
basic infrastructure, high speed internet and any other services required to ensure 
smooth development and functioning of zones; 
 
(e)  to allow any additional incentives, subsidies and rebates, for zone developers and 
zone enterprises, with the approval of the Feder al Government, Provinci al 
Governments or local governments as the case may be; 
 
(f)  to charge fees and charges for services rendered and the licenses issued to the zone 
applicants, zone developers and zone enterprises as may be prescribed; 
 
(g)  to impose fines, sanctions and penalties for contraventions under this Act, rules or 
regulations; 
 
(h)  to appoint an Administrator to the zones in accordance with this  Act and any 
applicable rules or regulations; 
 
(i)  to collect information with respect to technologies and technological developments 
within and outside Pakistan and review the impact thereof; 
 
(j)  to enter into contracts, agreements or any other legal instrument for the purposes of 
this Act; 
 
(k)  to purchase, acquire, sell, lease, sub -lease, sub-let, license and hold moveable and 
immoveable property and set up companies for the purposes of the zones to meet 
the objectives of this Act; 
 
(l)  to see k assistance from any Federal/ Provincial officer, Ministry, D ivision, 
department or agency for the performance of its functions under this Act; 
 
(m)  to set up One Window Facility to facilitate zone developers and zone enterprises; 
and 
 
(n)  to do anything incidental and ancillary to the foregoing as may be  deemed 
necessary. 
 
(3) The services provided by the Authority shall be deemed to be essential services for the purposes 
of the Pakistan Essential Services (Maintenance) Act, 1952, and shall be notified accordingly. 
 
 
 
 
 
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5. Functions of the Authority.___(1) To perform its functions, the Authority may— 
 
(a)  from time to time, review national investment policies, laws and regulations that 
impact zones and propose any amendments, modifications and relaxations therein 
to the Federal Government, the Provincial Government or the Local Governments; 
 
(b)  initiate and consider zone investment proposals and categories for investment 
which may require specific treatments and interventions and recommend, where 
appropriate, additional incentives or relaxation of conditions or criteria to the 
Federal Government, the Provincial Government or the Local Governments for 
approval; 
 
(c)  he associated in the formulation of all policies that may have an impact on 
investment in Technology Sectors in Pakistan, including economic, fiscal and trade 
policies; 
 
(d)  coordinate with Ministries, departments, agencies and Provincial Gove rnments or 
Local Governments with regard to policies and their implementation having impact 
on investment in Technology Sectors; 
 
(e)  identify and promote Technology Sector investme nt opportunities  within and 
outside Pakistan; 
 
(f)  develop and approve mechanisms and arrangements for management and operation 
of zones including one -window facility for provision of all services and utilities, 
physical infrastructure,  logistics infrastr ucture, human capital development and 
digital infrastructure for the zone; 
 
(g)  identify, create and upgr ade technological and scientific  clusters and industrial 
support systems within zones including, but not limite d to Research and 
Development centres, skills development centres, training institutes, data centres, 
universities, hospitals, and other hard and soft infrastructure r elated to successful 
execution of zones; 
 
(h)  attract investment into zones including foreign direct investments, venture capit al 
funds, public sector investments, public-private investments and private funds; 
 
(i)  marketing and promotion of zones by developing a marketing, image-building and 
public relations strategy to generate interest in the potential and opportunities of the 
Pakistani market and publicize its activities; 
 
(j)  identification and approval of locations for setting up zones; 
 
(k)  procure and acquire land or any infrastructure for the zones; 
 
 
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(l)  appoint commissions, expert bodies and consultants to study various a spects of 
attracting investments  in technology related businesses and improving the 
investment climate, procedures and other related matters; 
 
(m)  develop st udies, feasibility reports, experiments, public -private partnership 
frameworks, financial vehicles, technical research and surveys related to zones; 
 
(n)  develop or cause to be developed Master Plans for zones and approve or cause to 
approve them; 
 
(o)  act as One Window Facility for investors, zone developers, zone enterprises and 
other stakeholders involved in zones dealing with other relevant government 
entities on their behalf; 
 
(p)  issue letters of recommendation or invitation letters, which shall b e deemed 
sufficient for the purpose of issuance of business and work permits or visas by 
relevant Authority; 
 
(q)  collect, compile, analyse, maintain and distribute zones related information, and 
from time to time publish analytical reports, trends and insights; 
 
(r)  promote a congenial environment and ensure ease of doing business for investments 
into zones by allowing import of Capital Goods as required by the zone developers 
and zone enterprises; 
 
(s)  negotiate and finalize all such acts, deeds, initiatives, agreements for protection and 
promotion of technology r elated i nvestments with other countries, international 
forums, financial institutions and multi-lateral agencies, and represent Pakistan on 
regional and international level, that may be necessary or expedient for the purpose 
of successful planning, development, execution, implementation, management and 
maintenance of zones; 
 
(t)  liaise with private sector trade bodies and associations, both local and international, 
for their active participation in promotion of technology related investment; 
 
(u)  approval, issuance, notification and cancellation of licenses of zone enterprises and 
zone developers; 
 
(v)  allocate, lease, sub lease, rent, sell land, space, lots within zones developed by the 
Authority itself; 
 
(w)  perform any other function assigned to it by the Federal Government. 
 
(2) The Federal Government may, from time to time, assign more  functions and issue guidelines 
to the Authority. 
 
 
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6. Board.___(1) There shall be a Board of Governors of the Authority comprising of the following 
members, namely:___ 
 
(a)  the Prime Minister of the Islamic Republic of Pakistan shall be its President; 
 
(b)  Federal Minister in Charge of the Division Concerned; 
 
(c)  Chairperson of the Authority; and 
 
(d)  not less than seven and not more than twenty -five ex-officio and Independent 
members, provided that not less than five Independent members shall be appointed 
from private sector from amongst persons of renowned integri ty, expertise, 
experience and knowledge. 
 
(2) The ex-officio 1[* * *] members shall be appointed by the Federal Government for a term of 
four years 1[:] 
1[Provided that the independent members shall be appointed for a term of four years by the Prime 
Minister on recommendation of the Secretary of the Division concerned.] 
(3) An ex-officio member shall hold office as member till such time he  holds the office by virtue 
of which he is a member and upon his transfer, retirement, resignation or removal from office, the person 
appointed in such person’s place shall be the member. 
 
(4) Secretary of the Board shall be appointed with the approval of the President. 
 
(5) The Board shall meet at least twice in a year. The Secretary of the Board may take approval of 
any decision through circulation among members of the Board. The Chairperson of the Authority may 
call a special meeting with the approval of the President of the Board. 
 
(6) The meetings of the Board shall be presided over by the Presid ent of the Board a nd in his 
absence, the President of the Board shall appoint any member to chair the meeting. 
 
(7) The quorum for a meeting of the Board shall be one-third of the total membership of the Board, 
and decisions of the Board shall be made with majority of total present members of the Board. 
 
(8) The powers and functions of the Board are as follows: 
 
(a)  develop and approve national special technology zone strategy, national emerging 
technologies strategy , and national information and communication technolo gy 
strategy; 
 
(b)  develop and approve national special technology zone plan, national emerging 
technologies plan, and national information and communication technology plan; 
 
1Omitted, subs. and added by the Act No. XII of 2025, s. 2. 
 
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(c)  approval of the rules and regulations of the Authority; 
 
(d) issue such directions and policy guidelines to the Authority fro m time to time to 
protect the interests of the Government, investors and public; 
 
(e)  oversight, supervision and monitoring the performance of the Authority; 
 
(f)  approval of the annual budget, annual audited financial statement and accounts for 
any particular financial year; 
 
(g)  approval of annual report of the Authority; 
 
(h)  to annually review the implementation of this Act with a view to improving policies 
relating to zones. 
 
7. Budget, finance and audit.___(1) The Authority shall, in respect of each financial year, prepare 
its own budget in accordance with the prescribed procedure and submit to the Board for approval. 
 
(2) The Budget statement shall specifically state the estimated receipts and expenditure and the 
sums which are likely to be required from the Federal Government during the next financial year. 
 
(3) The Authority shall maintain complete and accu rate books of  accounts of its receipts and 
expenditure. 
 
(4) The accounts of the Authority shall be audited at the close of each financial year by a qualified 
firm of Chartered Accountants. 
 
(5) The Authority shall produce such accounts, books and document s and furnish such 
explanations and information as the auditors may require for the purpose of audit by the external auditors 
or Auditor General of Pakistan. 
 
(6) Copies of th e Auditor’s Report on the accou nts shall be provided to  the Authority and the 
Board. 
 
(7) The Chairperson of the Authority shall be its Principal Accounting Officer. 
 
8. Grants. ___(1) The Feder al Government, the Provincial Governments and the Local 
Governments may, from time to time, place annual grants to the Authority for the smooth discharge of its 
affairs. 
 
(2) The Authority may receive domestic and international grants for the purposes of achieving the 
objectives of this Act. 
 
9. Funds.___(l) There shall be constituted a non-lapsable fund to be called the Special Technology 
Zones Authority Fund, which shall vest in the Authority and shall be utilized by the Authority to meet all 
 
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expenses and charges properly incurred in connection with carrying out the purposes of this Act. The Fund 
shall be credited all sums received by the Authority. The Fund shall be financed by: 
 
(a)  fees, commissions, charges and other amounts received by the Authority; 
 
(b)  funds including grants provided by the Federal Government for payment of salaries, 
establishing infrastructure and running day -to-day business of the Authority as  a 
one line budget; 
 
(c)  funds provided by the Provincial, Local Governments or any other body including 
grants; 
 
(d)  funds including grants from national and international bodies / organizations; 
 
(c)  loans from the Federal Government or Provincial Government; 
 
(f)  loans, investments and foreign aid obtained by the Authority; 
 
(g)  funds raised through Public-Private Partnerships by the Authority; 
 
(h)  funds from bonds, sukuks and other forms of finances and investments on the basis 
of participation term certificates, musharika  certificates, term finance certificates 
or any other financial or debt instruments or securities issued by the Authority; 
 
(i)  proceeds of any investments made by the Authority in utilizing any  amount of 
Funds which is not required for immediate use. 
 
(2) The Fund will be utilized for the above purposes as per the  mechanism prescribed in the 
regulations. 
 
(3) Without prejudice to any other law for  the time being in force, the Authority may invest in 
development of projects, specialized funds or financial vehicles or any other area approved by the 
Authority with fees and contributions  from zone developers and zone enterprises, and with funds from 
public, pr ivate or international entities , and Federal, Provincial or Local Governments, to achieve 
objectives of this Act. 
 
10. Bank accounts.___(1) The Authority may open and maintain bank accounts in local and foreign 
currency in any scheduled bank in Pakistan. 
 
(2) Bank accounts of the Authority shall be opened with the prior approval of principal accounting 
officer. 
 
11. Approvals Committee. ___(1) There shall be a committee, called Approvals Committee, 
headed by the Chairperson and up -to eight members from amongst the Members and officers of the 
Authority nominated by the Chairperson for this purpose. 
 
 
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(2) The Chairperson may call any person or adviser or consultant as an expert to assist the 
Approvals Committee and such person or adviser or consultant shall not be eligible to cast a vote. 
  
(3) The meeting of the Approvals Committee shall be convened on the orders of the Chairperson. 
 
(4) The Approvals Committee shall m eet as frequently as required, b ut not less than once every 
quarter. 
 
(5) Two third or more of the members shall constitute quorum of the Approvals Committee. 
 
(6) Where the Chairperson is not present, a Member of the Authority nominated by the Chairperson 
shall chair the Approvals Committee. 
 
(7) The decisions of the Approvals Committee shall be taken by majority of the total membership 
present through voting. In case of equal voting, the Chairperson of the committee shall have the discretion 
to take the final decision. 
 
(8) The Chairperson shall appoint an officer from the Authority to be  the Secretary of  the said 
Committee. 
 
(9) The Chairperson shall be competent to remove or substitute any member of the Committee, if 
desired. 
 
(10) The Chairperson may constitute sub -committees to assist the  Approvals Committee to 
discharge any of its functions. 
 
12. Functions and Responsibilities of the Approvals Committee. ___(1) The fun ctions and 
responsibilities of the Approvals Committee shall be— 
 
(a)  to recommend such procedures, mechanisms and regulations to the Authority for 
implementation of this Act as are applicable to all zones or a particular zone; 
 
(b)  to review and recommend amendments in national information and communication 
technology strategy, national emerging technologies strategy and other technology 
and science related initiatives; 
 
(c)  to approve or amend development plan and Master Plan for each zone; 
 
(d)  to recommend strategic initiat ives to the Authority including,  but not limited to, 
inter-alia, establishing new zones, expansion of existing zones, entering into 
agreement with other entities, joint ventures, public-private partnerships etc; 
 
(e)  to recommend additional incentives for zone developers and zone enterprises; 
 
(f)  to recommend any existing or new zone proposed by any investor,  whether public 
or private; 
 
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(g)  to consider and approve zone developers and zone enterprises applications and 
agreements. 
 
13. Criteria for approval of zones. ___(1) The Authority shall prescribe  the criteria for approval 
of zones in the rules. 
 
14. Licensing of zone enterprises and zone developers. ___(1) The Authority shall prescribe the 
criteria and procedures for licensing of the zone enterprises and zone developers in the regulations. 
 
15. Sanctions against zone en terprises and zone developers. ___(1) A mechanism may be 
prescribed by the Authority in the regulations for sanctions, imposition and recovery of penalties and fines 
against zone enterprises and zone developers for violations of this Act or any rule or regulation prescribed 
by the Authority. 
 
16. Land regime.___(1) The acquisition of any land or any interest in land for the Authority or for 
any purpose under this Act shall be deemed to be an acquisition for a public purpose within the meaning 
of the Land Acquisition Act, 1894 (1 of 1894) or any successor legislation, and the provisions of the said 
Act shall apply accordingly. 
 
(2) The Federal Government, Provincial Government, Local Government or any Local Authority 
may transfer or cause the transfer of any land, property, asset, inf rastructure, facility to the Authority, 
subject to prevailing laws. 
 
Explanation.___The expression “Federal Government, Provincial Government and Local 
Government” shall me an and include any authority , body, corporation or legal entity established or 
controlled by such Government and the word “transfer” shall mean and include any and all modes of 
transfer of properties, assets, land or infrastructure permissible under the laws of Pakistan. 
 
I7. Public utilities and other facilities.___(1) The Federal Government, Provincial Governments, 
Local Governments, Municipal Authorities, Cantonments, and other Territories of Pakistan, as the case 
may be, shall ensure the removal of all obstacles to the provision of, all infrastructure and utility facilities, 
at their c ost, including but not limited to electricity, water, gas, roads, telecommunication services and 
other essential facilities necessary for  efficient operations of a zone. The Federal, and Provincial 
Governments shall ensure adequate road access, at their cost, to the zones and adequate provision of zones 
from a safety and security standpoint. 
 
(2) The zone developer shall have the right to set up a renewable, thermal, hydel or other captive 
electric power generation plant or install power generator of sufficient size to cater the expected demand 
for electricity within a  particular zone as per rules or regulations of the Authority and to sell only the  
excess electricity generated outside that particular zone as per prevailing laws. 
 
(3) The Authority may execute agreements with the Provincial Governments, Local Governments, 
Municipal Authorities, Cantonments, local authority and other Territories of Pakistan for the purposes of 
implementation of this section. 
 
 
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., 
Explanation.___The expression “Federal Government, Provincial Government, Local Government 
Municipal Authorities, Cantonments, local authority and other Territories of Pakistan ” shall mean and 
include any authority, body, corporation or legal entity established or controlled by such Government. 
 
18. Incentives for zones. ___(1) On execution of relevant agreement with  the Authority, the zone 
developers as well as zone enterprises in a zone shall be entitled to incentives outlined in sections 20 and 
21. 
 
(2) With the objective of promoting a particul ar sector, industry or zone, the Authority may 
recommend and the Federal Government may grant additional incentives and exemptions to zone 
enterprises and zone developers including but not limited to subsidies fo r electricity, gas and high speed 
internet connectivity inside the special technology zones, provided that___ 
 
(a)  such additional benefits may only be granted if the Authority finds  these to be 
justified on the basis of an economic impact assessment; 
 
(b)  such additional benefits, if granted conditionally, may be liable to be forfeited with 
retro-active effect if it is finally determined that a zone developer or zone enterprise 
has failed to comply with the conditions prescribed for the additional benefits in 
question; and 
 
(c)  the Authority shall make economic impact assessment of the zone developers and 
zone enterprises within five years from the date the agreement is signed with the 
zone developers, and within the first year of operations of a zone enterprise. 
 
(3) Any additional benefits granted by the Authority—  
 
(a)  shall be deemed to be included in the relevant Development Agreements; and 
 
(b)  shall become effective on such conditions as the Authority may stipulate. 
 
(4) Nothing in this A ct shall be construed to limit the Authority of any Federal, Provincial and 
Local Government Authority to grant such additional benefits to zone developers and zone enterprises as 
are within the scope of their respective statutory powers. 
 
(5) The State Bank of Pakistan may issue special fo reign exchange  regulations for incentives, 
benefits and exemptions as set out in this Act. 
 
19. Protection of incentives. ___(1) Incentives, benefits and protections under this Act shall be 
additional to all incentives, benefits and protections, which may be applicable to zone developers and zone 
enterprises under generally applicable legislation and international agreements of Pakistan. 
 
(2) These incentives shall not be withdrawn or modified or altered prematurely and retrospectively 
and any change therein shall be to the advantage of the zone developer and zo ne enterprise and not 
otherwise. 
 
 
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20. Exemptions and Incentives for the Authority and for the zone  developers.___(1) The 
following shall be the incentives for the Authority and  zone developers from the date of signing of the 
Development Agreement, for a period of ten years namely___ 
 
(a)  Exemption from all taxes under the Income Ta x Ordinance, 200l including tax on 
profits and gains, income tax, turnover tax, withholding tax, capital gains tax, 
income tax on dividend income and withholding tax on dividend; 
 
(b)  Exemption from sales tax under the Sales Tax Act, 1990; 
 
(c)  Exemption from Customs Duty under the Customs Act 1969 on the import in 
Pakistan of all Capital Goods incl uding but not limited to materials plant, 
machinery, hardware, equipment and software, dev ices, instruments, accessories, 
attachments, building materials, materials and any other equipment required to 
perform functions of the Authority, zones and zone deve lopers, whether or not 
manufactured locally, for use in zones; 
 
(d) Exemption from property tax; 
  
(e)  Exemption on dividend income and capital gains of any venture capital fund 
(whether local or foreign) derived from investments in the zone developers; and 
 
(f)  permission for opening and maintaining of foreign currency accounts, availability 
of foreign exchange, full convertibility to foreign currency and repatriation and free 
transfer of foreign currenc y to meet the requirements of investors, lenders, 
contractors, operators, consultants, insurers, re -insurers, vendors and advisors in 
relation to any compensation amounts, loan repayments, equity and return on 
equity, profits, works, goods and services in accordance with the foreign exchange 
regulations of the State Bank of Pakistan for zones. 
 
For the avoidance of doubt, co -zone developer shall be entitled to the tax  exemptions and incentives 
permissible to the zone developers under Section 20. 
 
21. Exemptions and Incentives for zone enterprises.___(1) The following shall be the incentives 
for the zone enterprises from the date of issuance of license for a period of ten years, namely:— 
 
(a)  Exemption from all taxes under the Income Tax Ordinance, 2001 including tax on 
profits and gains , income tax, turnover tax, withholding tax, capital gains tax, 
income tax on dividend income and withholding tax on dividend; 
 
(b)  Exemption from sales tax under the Sales Tax Act, 1990; 
 
(c)  Exemption from Customs Duty under the Customs A ct 1 969 on the import in 
Pakistan of all Capital  Goods including but not limited to materials, plant, 
machinery, hardware, equipment and software, devices, instruments, accessories, 
attachments, building materials, materials  and any other equipment required to 
 
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perform functions of the zone enterprises, whether or not manufactured locally, for 
use in zones; 
 
(d) Exemption from property tax; 
 
(e)  Tax exemption on dividend income and capital gains of any venture capital fund 
(whether local or foreign) derived from investments in the zone enterprises; and 
 
(f)  permission for opening and maintaining of foreign currency accounts, availability 
of foreign exchange, full convertibility to foreign currency and repatriation and free 
transfer of foreign  currency to meet the requirements of investors, lenders, 
contractors, operators, consultants, insurers, re -insurers, vendors and advisors in 
relation to any compensation amounts, l oan repayments, e quity and return on 
equity, profits, works, goods and services in accordance with the foreign exchange 
regulations of the State Bank of Pakistan for zones. 
 
22. Alternate dispute resolution mechanism. ___(1) The Authority shall prescribe a legally 
binding and enforceable alternate dispute resolution mechanism consis tent with the applicable laws for 
the settlement of all disputes arising among and between the Authority, zone developers or zone 
enterprises. 
 
(2) All agreements between zone devel opers, its operators and sub-consultants, and zone 
enterprises shall be governed by the afore-stated alternate dispute resolution mechanism prescribed by the 
Authority: 
 
Provided that nothing herein shall preclude the Authority or any of its sub -ordinate entities or 
companies from entering into international arbitration agreements with foreign zone developers and zone 
enterprises. 
 
23. Cognizance of legal disputes. ___(1) No court shall take cognizance of a legal dispute under 
this Act or the rules or regulations made thereunder to which the jurisdiction of the Special Technology 
Zones Appellate Tribunal extends. 
 
(2) The Special Technology Zones Appellate Tribunal shall have exclusive  jurisdiction to 
determine all disputes arising in respect of any matters___ 
 
(a)  concerning any officer or employee of the Authority with the  exclusion of the 
Chairperson; 
 
(b)  concerning the exercise of powers and functions of the Authority  under sections 4 
and 5 of the Act or, Administrator under section 26; 
 
(c)  concerning any aspect  relating to the one -window facility  established by the 
Authority; 
 
(d)  concerning any decision of the Approvals Committee; 
 
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(e)  in relation to sections 13 and 14 of the Act or any rules or  regulations prescribed 
thereunder; 
 
(f)  concerning any sanction, penalty or fine imposed by the Authority under section 15 
or any rules or regulations prescribed thereunder; 
 
(g)  relating to section 19 of the Act: and 
 
(h)  concerning any other rule or regulation prescribed by the Authority. 
 
24. Appeals to Special Technology Zones Appellate  Tribunals.___(1) Any zone developer or 
zone enterprise or a concerned person aggrieved by any order of the Authority may prefer an appeal before 
the Special Technology Zones Appellate Tribunal, within thirty days of the order, in accordance with the 
prescribed rules. 
 
(2) An appeal to the Special Technology Zones Appellate Tribunal shall be in such form, contain 
such particulars and be accompanied by such documents and fees as may be prescribed under this Act. 
 
(3) The Special Technology Zones Appellate Tribunal shall consist of a Chairman, who shall be a 
legal expert, and two members, one being a technical expert and the other being a financial expert, who 
shall be persons of ability,  integrity and have special knowledge and professional experience of not less  
than ten years in the fields of law, economics, technology or finance. 
 
(4) The Chairman and Members of the Special Technology Zones Appellate Tribunal shall hold 
office for a period of three years and shall be eligible for re -appointment for a similar term or terms and 
shall cease to hold office on attaining the age of sixty eight years or the expiry of the term whichever is 
earlier. 
 
(5) The terms, conditions and appointment of the Special Technology Zones Appellate Tribunal 
Chairman and other members shall be in the manner as may be prescribed this Act, which may be made 
and shall take effect, notwithstanding anything contained in any other law or rules for the time being  in 
force. 
 
(6) The Chairman and the members shall be entitled to such salary and other terms and conditions 
of service as the Authority may prescribe. 
 
(7) The Special Technology Zones Appellate Tribunal shall decide an appeal expeditiously but not 
later than three months of its presentation to the Tribunal. 
 
(8) The Special Technology Zones Appellate Tribunal shall, for the purpose of deciding an appeal, 
be deemed to be a civil court and shall have the same powers as are vested in such court under the C ode 
of Civil Procedure, I908 (Act V of 1908), including the powers of___ 
 
(a)  enforcing the attendance of any person and examining him on oath; 
 
(b)  compelling the production of documents; and 
 
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(c) issuing commissions for the examination of witnesses and documents. 
 
(9) It shall be sufficient for the Special Technology Zones Appellate Tribunal to establish, or to be 
satisfied as to any matter on the standard of proof applicable to civil proceedings in summary manner in 
a court of law. 
 
(10) The Special Technology Zone s Appellate Tribunal’s determinations or decisions under this 
Act shall be deemed to be the decrees of a civil court under the Code of Civil Procedure, 1908 (Act V of 
1908). 
 
Explanation.___ It is clarified that the timeframe for rendering a decision of thee months is 
mandatory and not directory. 
 
25. Appeal to Supreme Court.___(1) Any person aggrieved by an order of the Special Technology 
Zones Appellate Tribunal may prefer leave to appeal to the Supreme Court of Pakistan within sixty days 
under the rules prescribed by the Supreme Court. 
 
26. Appointment and Powers of Administrator. ___(1) The Authority may appoint any one or 
more persons an Administrator to investigate, either on its own motion or on the basis of any information 
received, whether any contravention of any provision of or anything prescribed by this Act has be en 
committed. Provided that an Administrator’s investigation shall be carried in the manner prescribed. 
 
(2) Where an Administrator, after concluding an investigation is sat isfied that a contravention of 
any provision of or anything prescribed by this Act has been committed, may recommend to the Authority 
to undertake any of the following in the manner prescribed: 
 
(a)  impose a fine on or sanction any person responsible for such contravention; 
 
(b)  cancel any license issued by the Authority to any person  responsible for such 
contravention; 
 
(c)  issue directions to any zone developer, co -zone developer, or zone  enterprise to 
cease from doing any particular act in a zone. 
 
27. Powers to make rules.___(1) The Authority may, with the approval of the Federal Government, 
make rules, on the matters as deemed necessary for implementation and t o carry out the purposes of this 
Act. 
 
(2) Until the rules referred to in sub -section (1) are made, the President of the Board shall be 
competent to determine, the terms and conditions for appointment of the Chairperson, Members, 
Executive Directors, officers and employees of the Authority. 
 
28. Powers to make regulations.___(1) The Authority may, with the approval of the Board, make 
regulations as deemed necessary for the implementation of and to carry out the purposes of this Act. 
 
Page 21 of 23 
 
29. Annual report.___(1) The Authority shall prepare and submit to the Board, within four months 
of the expiry of each financial year, a report on the conduct of its functions and affairs for that year. 
 
(2) Each such annual report shall include___ 
 
(a) an audited statement of income and expenditure; 
 
(b) an audited balance sheet; 
 
(c)  a short financial statement of preceding financial year; 
 
(d)  activities of the Authority during previous financial year; 
 
(e)  an outline of the investment programs for the year ahead; and 
 
(f)  any other matter which the Federal Government may direct or the Authority may  
consider appropriate to make its report more self-speaking about its initiatives and 
achievements. 
 
30. Delegation of powers. ___(1) The Authority may delegate any of its powers and assign its 
functions subject to such con ditions as it may deem fit to im pose, to the Chairperson, Approvals 
Committee or any other committee. 
 
31. Recruitment.___(1) The Authority may, from time to time, create, sanction and approve posts 
and determine the need to employ and appoint such Members, officers, members of its staff , advisers, 
consultants, and other employe es, as it considers necessary fo r efficient performance of its functions on 
such terms and conditions as m ay be prescribed by regulations,  provided that all appointments shall be 
made in accordance with the prescri bed educational, technical or professional qualifications and 
experience: 
Provided that the regulations, orders, instructions for the t ime being in force governing all  
appointments and terms of service of employees of the Authority shall be contractual and non-statutory. 
 
32. Employee of the Authority to be public servants. ___(1) For the purposes of this Act, the 
Chairperson, Members, Executive Directors and other Officers, staff, advisers, consultants and experts of 
the Authority shall be deemed to be public servants within the meaning of section 2l of the Pakistan Penal 
Code, 1860 (Act XLV of 1860). 
 
33. Assistance from agencies.___(1) Notwithstanding anything contained in any other law for the 
time being in force, the Authority may seek any assistance or information from any person including but 
not limited to, any Ministry, Division, department, statutory body, corporation, agency of the Federal, 
Provincial or Local Governments which, in its opinion, conce rns any  matter relating to the smooth 
functioning of the Authority and the requisite  assistance or information, whatever the case may be, shall 
be provided to the Authority within the time frame stipulated by it. In cases where consent is sought, and 
it is not received within the stipulated time, it shal l be  deemed as approved after completion of  the 
stipulated time. 
 
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1 
34. Public Sector and State -Owned Enterprises Investments in zones. ___(1) Notwithstanding 
any prohibition or limitation contained in any law, rules regulations, directives or instructions for the time 
being in force, all public sector authorities, departments, agencies, funds, statutory and non -statutory 
bodies, other authorities and state-owned enterprises established or controlled by the Federal, Provincial 
or Local Government may, with the approval of their competent authorities, invest in the zones after due 
consultations with the Authority. 
 
35. Employment of Key Persons.___(1) Notwithstanding anything contained in any other law, the 
Authority may issue special rules for the employment by zone developers and zone enterprises of key 
managerial and technical persons who are not citizens of Pakistan, relating to the terms and conditions of 
their contracts as well as with respect to the issuance of visas, temporary residence permits and temporary 
work permits for such key persons and their dependents. 
 
36. Indemnity.___(1) No suit, prosecution or other legal proceedings shall lie against the Board, 
Authority, the Chairperson, Members, Executive Directors, officers, the employees and consultants of the 
Authority and its subsidiaries for anything done in good faith or intended to be done under this Act or any 
rule or regulation made thereunder. 
 
37. Sums payable to the Authority to be recoverable as land revenue. ___(1) All sums payable 
to the Authority in accordance with the provisions of this Act and the rules or regulations shall be 
recoverable as arrears of land revenue. 
 
38. Act to override other laws.___(1) The provisions of this Act shall have effect notwithstanding 
anything to the contrary contained in any other law for the time being in force and any such law shall, to 
the extent of any in-consistency, cease to have any effect on the commencement of this Act. 
 
39. Jurisdiction Barred.___(1) Notwithstanding anything contained in any other law, the powers 
and functions of the Authority relates to the national security of the Pakistan and therefore shall not be 
called into question through any criminal or civil proceedings or otherwise by any agency. Save as 
provided under this A ct, no order made or proceeding taken under this Act, rules or regulations made 
thereunder by the Authority or any officer or Authority authorized by it shall be called in question in any 
court or administrative tribunal and no injunction shall be granted by  such court or tribunal in respect of 
any decision made or proceedings taken in pursuance of any power conferred by or  under this Act, rules 
or regulations made thereunder. 
 
40. Removal of difficulties.___(1) If any difficulty arises in giving effect to any of the provisions 
of the Act, the Federal Government may, within one year of the commencement of this Act, make s uch 
order, not in-consistent with the provisions of this Act, as may appear to it to be necessary or expedient 
for the purpose of removing such difficulty. 
 
41. Repeal and savings. ___(1) The Special Technology Zones Authority Ordinance, 2020 
hereinafter referred to as the repealed Ordinance is hereby repealed. 
 
(2) Notwithstanding the repeal of the repealed Ordinance or anything contained herein-before, all 
orders made, decisions taken, rules or regulations made or amended, notifications issued, actions tak en, 
appointments made by the  Authority, the Prime Ministe r or the President of the Board,  and the Board, 
 
Page 23 of 23 
 
pursuant to the repealed Ordinance, shall be deemed always to have been lawfully and validly made, taken, 
or issued under the provisions of this Act, shall continue to be in force unless amended, varied, withdrawn, 
rescinded or annulled by a person or authority competent to do so under this Act, and shall not be called 
in question before any Court of Law. 
 
(3) All assets, rights, powers, authorities and privileges and all property, cash and bank balances 
reserve funds, investment and all other interests and rights in or arising out of such property and all debts, 
liabilities and obligations of whatever kind of the former Authority subsisting immediately before its 
dissolution shall stand transferred to and vest in Authority constituted under this Act. 
 
(4) Notwithstanding anything contained in this Act or any other law for the time being in force or 
in any agreement, deed, document, or other instrument  all officers, consultants, advisers, auditors and 
other employees and staff of the former Authority shall stand transferred to and be officers, consultants, 
advisers, auditors and employees and staff of Authority: 
 
Provided that the Chairperson and Members of the Authority on  the date hereof shall be deemed 
to be the Chairperson and Members of the Authority. 
 
(5) The persons mentioned herein-above shall be deemed to have been  appointed or engaged by 
Authority in accordance with the same terms and  conditions of service as were applicable to the m, 
immediately before such continuance in office or transfer: 
 
Provided that the civi l servants appointed to or working in the former  Authority shall upon their 
transfer to the Authority continue to be governed by  the federal civil servants laws and  rules made 
thereunder; 
 
(6) All de bts and obligations incurred, or contracts entered into , rights acquired, and all matters 
and things engaged to be done by, with or for the former Authority shall be deemed to have been incurred 
entered into acquired or engaged to be done by, with or for the Authority. 
 
(7) All suits and other legal proceedings instituted by or against the former Authority before its 
repeal shall be deemed to be suits and proceedings by or against the Authority and shall be proceeded or 
otherwise dealt with accordingly. 
 
(8) All actions taken by the Board, the Authority, Chairper son, Members, the officers and 
employees of the Authority between the lapse of the Ordinance and enactment are save d and not legally 
challengeable. 
 
(9) Any reference to the former Authority in any statutory instrument or document sha ll, unless 
the context otherwise requires, be read and construed as reference to be Authority. 
 
_____________ 
 
 
 
RGN Date: 01-07-2025