Big Boost for IT Sector: Special Technology Zone Approved in ISL

The Capital Development Authority (CDA) has formally approved the allocation of 140 acres of land in the federal capital for the establishment of a Special Technology Zone, marking a major step toward transforming Islamabad into a modern technology hub.

The decision was made during a high-level meeting at CDA headquarters, chaired by CDA Chairman and Chief Commissioner of Islamabad, Muhammad Ali Randhawa. The initiative is being developed in close collaboration with the Special Technology Zones Authority (STZA) and is expected to host both national and international companies, as well as startups, focusing on innovation and high-tech industries.

Master Plan of the Technology Zone

According to the briefing presented during the meeting, the master plan for the proposed Special Technology Zone includes:

• A dedicated technology hub to attract IT and software firms.

• High-tech production facilities to support hardware and manufacturing ventures.

• Commercial complexes designed for business services and corporate offices.

• Residential and mixed-use areas to provide accommodation for professionals and investors.

Officials stressed that the infrastructure has been planned to international standards, with the goal of attracting foreign investment and creating an ecosystem conducive to innovation, research, and digital transformation.

CDA officials revealed that businesses operating within the Special Technology Zone will enjoy several benefits, including:

• Tax exemptions on income and corporate earnings.

• Duty-free import of equipment and machinery.

• Streamlined procedures for business registration and licensing.

• Access to modern facilities and government-supported infrastructure.

The incentives are part of the government’s wider effort to encourage technology-driven enterprises and boost Pakistan’s competitiveness in the global digital economy.

During the meeting, it was also agreed to establish a joint working group comprising CDA and STZA representatives. The group will oversee financial feasibility, project execution, and regulatory frameworks to ensure the timely implementation of the project.

Chairman Randhawa emphasized that financial sustainability must remain a priority. “The financial aspects of this project should be thoroughly examined to ensure a viable and sustainable model. This initiative has the potential to transform Islamabad into a regional technology hub,”

Employment and Economic Impact

The CDA chairman highlighted that the Special Technology Zone will create significant employment opportunities for skilled youth, particularly graduates in computer science, engineering, and related fields. With Pakistan’s IT exports already showing steady growth, the government expects this project to further expand opportunities for software exports, outsourcing, and foreign investment.

Industry experts say that Islamabad’s strategic location, modern infrastructure, and status as the country’s administrative capital make it an ideal choice for such a development.

The Special Technology Zone is in line with the federal government’s vision of a “Digital Pakistan”, aimed at enhancing the role of technology in governance, business, and public services. By providing an enabling environment, the government seeks to position Pakistan as a key player in South Asia’s technology and innovation landscape.

Regional and Global Context

The move comes at a time when countries across the region are investing heavily in building technology parks and innovation zones. From India’s tech cities to Dubai’s Internet City, such projects have proven effective in attracting foreign investors and creating thousands of jobs.

The CDA’s approval of 140 acres for Islamabad’s Special Technology Zone is a landmark decision that has the potential to reshape Pakistan’s economic future. By combining international investment, local talent, and government support, the initiative could make Islamabad a hub for technology, research, and digital entrepreneurship in the years to come.