Pakistan Prepares to Establish Its First Tax-Free Technology Zone
Islamabad — Federal Minister for the Board of Investment (BOI), Qaiser Ahmed Sheikh, held a high-level meeting with the CEO of Silicon Village and a delegation of Chinese investors to discuss major investment opportunities in advanced technology, lithium battery manufacturing, and the minerals sector. The minister emphasized that Pakistan offers significant and profitable opportunities for investment in modern technology and digital infrastructure.
To encourage foreign investment, the minister announced major government incentives, including a nine-year tax exemption for investors operating in Special Economic Zones (SEZs) and zero customs duty on the import of industrial machinery.
Major Projects by Silicon Village and Chinese Companies
Several key initiatives aimed at transforming Pakistan's digital landscape were discussed during the meeting:
- First Tax-Free Technology Zone: Silicon Village plans to establish Pakistan's first fully tax-free technology zone along with an advanced Artificial Intelligence (AI) Data Center.
- Sister Technology Parks: Chinese companies expressed strong interest in developing modern Sister Technology Parks across Pakistan.
- Lithium Technology Investment: The Chinese delegation also showed interest in transferring lithium battery technology and investing in Karachi's industrial zones.
The government reiterated its commitment to promoting business-to-business (B2B) cooperation with China, adding that the Board of Investment will provide investors with comprehensive one-window facilitation services.
Briefing on Chiniot Iron Reserves and Pakistan Steel Mills
The federal minister briefed the delegation on the vast iron ore reserves discovered in Chiniot, highlighting new opportunities for investment in Pakistan's mining sector. He also discussed ongoing negotiations with Russia regarding the revival of Pakistan Steel Mills and formally invited Chinese investors to visit Karachi's industrial zones.