STZA Annual Book 2022-23
AI brief
The STZA Performance Report FY 2022-2023 documents the Special Technology Zones Authority's first full year of operations following the passage of the STZA Act 2021. The Authority has notified eight Special Technology Zones across Pakistan including Islamabad Technopolis (flagship, 140 acres, PKR 7.338 billion), Lahore Knowledge Park (800 acres), and operational zones in Faisalabad, Haripur, Karachi, and Rawalpindi. Major fiscal incentives have been operationalized including customs duty waiver on capital goods imports under SRO 744(I)/2023, sales tax exemption under the 6th Schedule, and income tax exemptions under sections 126 EA and 103D of the Income Tax Ordinance 2001. The One Window Portal is under development in phases with Phase-I in user acceptance testing, and international investment partnerships including China-Pakistan Technology Investment initiatives under CPEC have been established.
Key questions answered
What fiscal incentives are available for Zone Enterprises under the STZA Act 2021?
Zone Enterprises qualify for customs duty exemption on capital goods imports (SRO 744(I)/2023), sales tax exemption under 6th Schedule Table I Sr. 161, and income tax exemptions covering dividend income, profit and gains, and long-term capital gains under sections 126 EA and 103D of the Income Tax Ordinance 2001. Additionally, SBP has authorized special forex accounts enabling licensees to receive foreign revenue without PKR conversion and make international payments without SBP authorization.
How can our company apply for Zone Enterprise status and what is the processing timeline?
Companies can apply through STZA's One Window Portal (Phase-I under user acceptance testing as of FY 2022-23), which provides electronic license application and issuance. Applications are processed in accordance with applicable rules and regulations. Currently operational zones accepting applications include University of Agriculture Faisalabad (Agri-Tech Zone) and PAF-IAST Haripur.
What zones are currently operational and what is Islamabad Technopolis status?
Eight zones have been notified: New State Life Tower Islamabad (fully occupied with 9 licensees), University of Agriculture Faisalabad (225 acres, accepting applications), PAF-IAST Haripur (10 acres), Islamabad Technopolis (140 acres, PC-I uploaded for PSDP FY 2023-24, CDA layout approved), Pakistan Digital City Haripur (development in progress), Lahore Knowledge Park Lahore (800 acres), Pakistan Maritime Science & Technology Park Karachi (7 acres), and NASTP Rawalpindi (20 acres, 77 companies operational).
What government integrations has STZA established through the One Window Portal?
STZA has signed integration agreements with SECP (December 2022) for company data sharing and verification, PRAL/F BR (June 2023) for IRIS tax database access (50% API development complete), and Pakistan Single Window PSW for customs clearance. Phase-II will integrate FBR IRIS, PSW, SECP, and banking services. Phase-III will extend to Board of Investments, Ministry of Foreign Affairs, and Ministry of Interior for visa support and verifications.
What investment facilitation support does STZA offer to technology companies?
STZA provides strategic marketing, stakeholder engagement with international investors, and has formed joint working groups with Pakistan Embassy Beijing for Chinese technology investments under CPEC. Collaborations exist with World Economic Forum, World Bank Group, IFC, Google Asia Pacific, Amazon Web Services, and Huawei for investment-friendly policies. Additionally, the China-Pakistan Science and Technology Cooperation Center was jointly launched in Beijing with over 3,000 Chinese technology companies attending virtually.
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