Special Technology Zones Authority Act, 2021

2. Delinitions.-In this Act, unLess the context othenvlse requires,- (a) "A,lminisbrror" m€ans the Administrator as described unde. sec ion 26i (b) "Authorit)" lneans the Special l_echnolo8r-- Zones Authority esti.blished under section 3; (c) r'Board" means the Board of Golernors constitutcd undcr sec ion 6; (d) "ChairpcNon" means the ChairpeNon of the Althorit! appoi[ted by rhe Prime Minisler, puBuant to the provisions ofrhisAcl, $ho is entrusted with whole or substantially wholc of the powcrs of dre ma agement ofaffairs ofthe Authorily in accordance with the Act, (e) "Cupital Goods" means the goods including but not limited to malerials, plant, machincry, hardwarc. cquipmcnt and software, devices, instruments. accessories, attachrnenrs. building materials, materials and any other equipment r€quir€d to perfo.m functions oI the Authorrty, zones, zone dcvelopers and zone enterprises, whether or rrot manufactured locally, for use in the zones, set up under the Spccial Tcchnology Zones Authoriry Act, 2021: (0 "co-zone dev€topcr" means a Partncr oflhe zone dcveloper fbr rhe est€blishment, devclopmcnt, operation or mrnagemenr of zone; (g) "Division Concerned" means the Cabinet Division PART I] THE GAZE1]E OF PAKISTAN, EXTRA,, OCTOBER 6,2021 655 (h) "Devclopment Agreem€lt" means a duly approvcd agreemcnt bet\r,een Authority and a zone developer. agreed ro and endorsed b), the Approvals Committec that authorizcs Tonc developer to develop and establish a zone or a pan thereof; (i) "Master Phn" means an overarching planning document providing conceptual spatial, landscapc, infraslruclurc. facilities etc. plan, which is uscd 10 slructure rhc land and d€vclopment of infrastruclure and facilities for facilitaling thc smoorh functioning of the zoncs; (i) "Member" means Membcr of the Authoriq; (k) 'Oue Windorv Facility" means a physical or an informarion and communication technology (lCT) facility. comprising of relevanr entities of Federal, Provincial or l,ocal Govemments, for Iacilitation of lhe zone developer and zone enterprises to lodgc standardizcd information and documents s,ith a singlc-cnrry poinr to aulfill lhe requirements under the Act, rules or rc8ulations rncluding the enablishment. de\clopln(nr. execurion. opcmtions. funcrioning ind managemenr of /on$; (l) 'Persotr" includes any rcgistercd association of pcrsons, consortium, a body corporalc formed or incorporated by or under any law in force. company. corpomtion. sociery, modarab4 Real Estate Invcstment Trust (REIT), Governmen! trust, pannership, or anyjurrdrcal pcrsonality and includes rhe zone developer and zone cnterprise, (m) 'Prescrib€d" means prescrib€d by rules or .€gulations made and notified under this Act; (n) *Regulations" means regulalions prescribcd under this Act; (o) "Reserrch atrd D€velopEenl" includcs rcgular activities carried out with lhe purpose of obtaining new knowledge that shall enable the development of scicnce and tcchtrology or creating new equipmcnt, systcms, products. services, processes, applications, and tools etc., usiog rhe available information and resourccs, including training a.nd development, software producrion or improving rhosc that are availablel (p) 'Rulcs" means rules prcscribcd under this Actl (c) "Spccial Technolosr Zoncs Appcltatc Tribunal" means the Special Technology Zoncs Appellate Tribunal constitutcd undcr ihis Act: 656 THE GAZETTE OF PAKISTAN, EXTRA., OCTOBER 6, ]O2I ART I (0 "Technolo8y Sector" includes one or more technolos/ sectors prclcribed by the AuthoriB underthe rules; (s) "zonc dcveloper" means a public, pdvate or a public'private Pen,on responsible for dcyclopment, op€ratron or manaSemenl of the whole, or a pan of dr€ whole special technolo8y zone, and liccrsed by the Aurhoritv as such, and includes a co-zone dev,:loper; (t) "zone erterprise" means any public, privatc, or public-privatc Pcr:.od dcvcloping, opcrating and managing a lechnological cnttrprisc rvithin the zone and licenscd as such by the Aut rority; (u) "zonc" means a panicular t)?e or class of zone, which may be geoqraphical or virtual, new or existing or expansion of an existing zonc, as approved and notified by the Authority under the rules, inclrding, but not limit€d to special tech[olo&," zoncs, inlbrmation lcchnology parks, high-tech industrial areas, softwarc tcchnology parls. hardware technolos/ parks, technology cxport 7-ones, frec rechnology zones, science and technology parks, information lechnology zones, science and technology zones, R&D zones, opF)nunity zones, innovation zones, technology development /om)s, knowledge parks, sman cities, knowledge cilies, technolo8y rncubation zones or any seclor.zones. which are devclopcd for the dev(ropment, promotion and proliferarion of technology, panicularly all rhe latest cutting edge te.hnoloSies and may requirc rechnological intervention such as biotech, chemical technologies, agrircch, finterh, robotics. nanotech, edtech, etc. and other zones witl any combination or combinations ofthe aforesaid ficlds.

3. Erllrblishmert of the Authority. {I) On the commencement of this Act, thcrc slall stand cstablished an Authority to b€ called the Special Technology Tonei Authonty in accordance with the provisions ofthis Act. (2) 'fhe Authority shall comprise ofthe Chairperson and up lo eight (8) Members to be appointed in accordance with the provisions ofthis Act. Provided thrt rhe Chairperson with the consent of the Board may increase or decieasc the nurnher of Members, fiom time to (ime, as may bc considercd appropriate. (j) Ihc Chairpcrson shall be appointed by the Primc Minisrer of Pakistan for a per iod of tlree yeers and shall be eligible for re-aJpointmcnr for one or more Simil,lr terms, P^Rr Il THE GAZET'IE OF PAKISTAN, EXTRA., OCTOBER 6,2021 551 (4) The M€mbers shall b€ appointed and removed ln rcco.dance with the regulations. (5) The Chairperson shall prcferably be from the private sector and shall be eligible for such remunerations and benefits as determincd. by the Prime Minister. (6) The Chair?crson of thc Authority mav resign frorn his oflice by writing in his hand addressed to the Prirnc Minister, or may be rcmoved from his offic€ ii on an inquiry by the Prime Minister, he is found unable ro perform the functions of his office because of mental or physical disabilit-v or he is found guilty by a aourt ofany serious crime ofmocal tuDitude. (7) The Authority may creetc, sanctroo and approve posts, from tim€ lo time as p€r rcgulations, and prcscribc by rc8ulations the qualifications, experience and terms and conditions for appointment of the Chairperson, Memb€rs- Execulive Directors and oth€r officcrs end st ffofthe Aurhoritv (8) I'he Audlority shall rheet at such rimc and place and in such manner. uls may be prescribed by regulations. (i) Three Members shall constinhe a quorum for meetings of the Autho.ity reqiri.ing a decision by thc Aulhority: Provided that unril regulations are made in this bchali such meetings shall be convcncd by thc Chairpcrson. ' (9) No act or proceeding of thc Authority shall bc invalid by reason only of the existence of a vacancy in, or dcfcct in, thc constitution of the Authority. (10) The powers and functions ofthe Authority as provided in the Act shall be excrcised in rhc namc of thc Aulhority by the Authority, comprising of Chairp€rson and thc Members, which shall act thmugh the Chairperson who shall be the chieIexecutive ofthe Authority. ln performance of his functions under the Act, the Chairperson may act eithcr directly or through thc Mgmbcrs. (ll) The principal office ofthe Authority shall be in Islamabad and it may set up olTices at such place or plac€s within or outside Pakistan as may be requted. (12) The Aulhority shall bc a My corporate having pcrpetual succcssion and a conrmon scal. with power. to purchase, acquire, s€ll, lea-se, sub- lease, sub-let. Iicense and hold moveable and immoveable property, and shall by said name sue and be sued. 658 THE GAZETTE OF PAKISTAN, EXTRA,,OCTOBER 6, 2O2I P,lxr I (13) The Authority shell havo thc powcr to constitute a-s many commiftees. councils and associatio,ls and establish companies, nationally and intemationally. to achreve its goals, as it may deem fit.

4. Powers of th€ Authority.-{ l) Subject to lhe provisions of this Act. the Authoriry may take such rneasurcs and cxercrsc such powcrs as may be .cquired for perfonnance of its firnctions. (2) $'i6ot t prcjudice to the generality of lie powers conferr€d by suFs€ction (1), the Authority shall havc exclusive power and authority- (a) for Irlanning, policy fbnnulatron. exccution, monitoring and e\,alurlion of Tones which rna)'be assigned to rt, approved by it, notifi:d by it or developed by it fmm time to time; (b) to approve and noliry zoncs in accordance with the rul€s or regultrons; (c) for -'slablishmen! development implementation, operations, management and funcrioning of zones; (d) to m?ke or cause to mslie arrangemen6 for provision of secunty, ulilitirs, roads, basic infrastructure, high speed intemet and any olhea services required to ensure smooth dcvclopment and functioning ofzoncs; (e) to allrw any additional inccntivcs, subsidics and rcbates. for zone dcvel )pers and zooe cntcrpriscs, with the approval of rhe Federal Govelment, Provincial Govemments or local govemments es the case rnay be; (f) to chlrrge fees and charges for services rcndered and the licenses issue(l to the zone applicanls, zone developrs and zone enlerp scs as may be prescribed; (g) to impos€ fines, sanctions and pcnaltics for contravcntions undcr thisAct, rules or regulations; (h) to appoint an Adrninistrator to the zoncs in accordance with this Act alld any applicahle rulcs or retulrrionsl (i) to crlleq informatron with rcspccr 1o tcchnologics and techn,)logical developments within and outside Pakistan and review the ilrpact thereof; (i) to enter into cont.acts, agreements or any other legal insrrument for thc pr rposes oflhis Act: P\Rrll THE GAZETTE OF PAKISTAN, EXTRA., OCTOBER 6,2021 659 (k) to purchase. acquire, sell, lease, sub-lease, suElet, licEnse and hold moveable and lmmoveable property and set up companies for the purposes ofthe zones to meet the objectives ofthis Act; (l) to seek assistance from any Federal / Provincial officer, Ministry, DivisiorL depafiment or agcncy for the performance ofits functions und€r this Act: (m) to set up One Window Facility !o lacilitate zone dcvelopors a d zone enterprises; alrd (n) to do anlthing incidental and ancillary to the foregoing as may bc deemed necessary. (J) The sefticcs provided by the Authority shall be deemed lo be csscntial services for the purposes of th€ Pakistan Essential Scrviccs (Marntenance) Ac! 1952, aad shall be notified accordingly.

5. Functions of the Authority.-{l) To pe.form its functions, thc Authority may (a) f.om time to time, review national rnvestment policies, laws and regulations that impact zones and propose any amendmcnls, modifications and rel&\ations therein to the Federal Govcmment, the Provincial Govemment or the Local Govemments: (b) in(iate and consider zone investment proposals and cal€gories for investment which may rcquirc specific tr€atnents and interventions and recommend, wherc appropriate, additional inc€ntives or relaxation of conditions or criteria to the Fedeml Govemment, the Provincial Govemmenl or the Local Covemments for approval; (c) be associated in the formulation of all polici€s that may have an impact on investment in Technolory Sectors in Pakistan, including economic, fiscal and (radc policics; (d) coordinate with MinisEies, depa(ments, agencies and Provincial Govemments or Local Govemments with r€gard to policies and their implemenhtion having impacl on investment in Technolos/ Sectors; (e) identiry and promote Tcchnolos/ S€ctor investment opportunities within and ouLside Pakistan; (0 develop and approve mechanisms and arrangemen6 for management and operation of zones including one-window facility lor provision of all scrviccs and utilities. phys.ical infmstructure, 660 THE GAZETTE OF PAKISTAN. EXI.RA., OCTOBER 6,2O2I [PART I logislics infiastructure, human capital developmcrrt and digital infiasFucture for the zone; (g) rdent ry, create and upgradc rcchnological and scientific clusters and ndustrial support syslems within zones including- but not limit(d 10 ResesrEh and Devclopment centres, skills developmcnt centrcs. traiDinB institutes, data centres, universities, hospitals, and olhcr hard and soft inf.astruclure rclated to succcssfulcxecution of zonel; (h) auract investment into zoncs ilcluding foreign diroct inveshrients, venture capital funds. publrc scclor investments, public-private investrnents and private funds; (i) mark:tin8 and promotion of zones by developing a marketing imag,lbuilding and public relations strategy to gcnerate interest in the porential and oppo(unities of the Pakist ni market and publi-'i7c its acti!iries: c) identification and approlal ol locations for setting up zones; (k) proctrre and acquire land or any infrastsucture lor thc zones; 0) appo nt commissions, expen tDdies and consultants to study various Espects of attracting investments in technolo$r related businesscs and improving the investment climate, procedures and othcr relat€d matters; (m) dcvelop studies, feasibihry reports, experiments, public-private parhership Farnework, financial vehiclcs, t€chnical research and survrys related to zones; (n) davelop or cause to be developed Master Plans for zones and _ approve or cause to approlc thcm: (o) ast ai Onc Window Facilir) for investors, zonc dcvclopers, zone enterprises and odrcr stakcholdcrs invol\ed in r.ones deating with other relevant govemment cnlLtics on thsir behall; (p) issue letters of recommend al ion or inviurrion leners, which shall be deerned sufficient for rhe purposc of issuancc of busincss and work permts or visas by relevant Authority; (q) colle,x, compile. analyse, ntainhin and distribulc zoncs relared infonnation- and from rime rrr rime publish analfical rcpoG, tsends and irsiShrs; P^nr Il THE GAZETTE OF PAKISTAN, F,XTPA,, OCTOAER 6, 2O2I 66I (r) promote a congenial environment and €nsu.e ease ofdoing business for investments into zones by allowing import of Capital Coods as requircd by the zone dcvelopers and zone enterprises; (s) negotiate and Iinaliz-c ell such acts, deeds, initiatives, agre€,nents for protection and promotion of techrology relatcd investments with other countrics. intemational forums, financial institutions and multi lateral agencics, and rcpresent Pakistan on regional and intemational level, that mly be necessary or expcdient for the purpose of successful planning, developmcnt, execution, implementation, managementand maintenance of zones; (t) liaise with private scctor tmde bodies and associations, both local and intemational, for th€ir aclive participatfun in promolion of technologz related investment; (u) approval, issuance, notification and cancellation of licenses olzone enterpriscs and zone developers; (v) allocate, lcase, sub lease, ren! sell land, space, lots rvithin zones developed by the Aurhority itself; (w) p€rform any otier function assigncd to il by thg Federal Govemment, (2) The Fedcral Govemment may, from time to time, essign more fiinctions and issue guidclines to the Aulhorily.

6. Board.={ ) Thcre shall be a Board of Covemors of (he Authority I comprising ofthe follorving membcrs, namely: - (a) the Prime Minister of the Islamic Republic oi Pakistan shall be its President: (b) Fcderal Mirister in Charge ofthe Division Concemed; (c) Chairpe6on of the Authority; and (d) not less than sevcn and not more than t[€nty-five ex-officio and Indcpendent members, providcd that not lcss than five Indepcndcnt members shall be appointed from private sector fiom amongst p€rsons. of renowned integrity, exp€nise, expcrience and knowledge. (2) lhe ex-olfcio and the lndependcnt members shall bc appointed by lhe Federal Govemment for a term of four years. 662 TTIE (,AZETTE OF PAKISTAN, EXTRA., OCTOBER 6,202I [P^Rl I 13\ An er-officio member shall hold officc as member till such timc he holds the office by virtue of which he is a membcr and upon his transfer, retirerncnt. resigralion or removal ftom olTice, the person appointed in such person's place shall be the member (4) Secrctary of the Board shall be appointed with the approval of lhc President. (5) Th( Board shall meet at least t\r'ice in a year. '[he Sccrctar] of thc Board may take rpproval ofany decision lhrough circulation amonS members of the Board. The Chairperson ofthe Aulhority rnay call a special meeting with the approval ofth€ Prsident ofthe Board. (6) The mgelings ofthe Board shall be prcsided over by the President of the Board an(l in his absence, thc Prcsidc[t of lhe Board shall appoint any member to chair rhe 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 maiority oftotal l)rcsent members ofthe Board. (8) Ihe powe6 and funclions oflhc Board are as follows (a) dev,rop and approve nalional special lecbnology zone strategJ, nali,rnal emerging technologies strategy, and national information and commuoica(ion t€chnology srrategy; (h) dev(ilop and approve national special technology zone plan, nati,)nal emerging technologies plan, and national informalion and colnmunicatron tcchnology plan; (c) approval ofthe rules and rcgulations ofthe Authority; (d) issu,j such directions and policy guidelincs to the Authority from rimc to time to protect the interests of $e Govemment, investors and public; (e) ovcrsrght, supeoision and rnorritoring the performance of the ,\utJrority; (1) approval oi the annual budget, annual audited financial statement and rccounts for any particular financialyear: (g) apprJval ofannusl report oflhe Authorit-v; (h) to arnually review the implcmentation of this Act with a view to improving policies relating k) /orcs. PAR'| I THD GAZETTE OF PAKISTAN, EXTRA,, OCTOBER 6,202I 663

7. Budget, Iinence and audiL-{l) The Authority shall, in respcct of €ach financial year, pr€parc its own budget in accordance wilh the prescribcd procedure and submit to the Board for approval. (2) Thc Budget sralement shall specifically state the cstimated receipts and expenditurc and the surns which are likely to be required from the Federal Govemment during lhe next financial year. (3) 'Ihe Authority shall maintain complele and accurate books of accounts ofits receipts and €xp€nditurc. (4) The accounts of lhe Authoritv shall be audited at the close of cach financial year by a qualificd Ilrm ofCha(ered Accountants. (5) The Authoriry shallproduce such accounts, books and docunlents and fumish such explanations and inforftation as the auditors may require for fte purpose ofaudir by the extemal auditors or Auditor Geneial of Pakistan. (6) Copies ofthe Auditor's Report on the accounts shall bc providcd to the Authorilv and tho Board. (7) The Chairperson ofthe Authority shall be its Principal Accountrng Officer E. Grxnts. {l) The Federal Co\cmmeflt, the Provincial Covemmcnts and thc l,ocal Governrnents may, from lime to time, place annual grants lo the Aurhoriry for the smoorh discharge of its alTairs. (2) Thc Authority may receive domestic and intemational Erants for the purposes oFachicving the objectives oflhis Act-

9. Furds.-<l) Thcre shall be constituted a non-lapsable fund lo be called the Special Technology Zones Authority Fund, which shall vest in the Authority and shall be utilized by tle Authoriry to mcct all cxpenses and charges properly incurred in connection with carrying out the purposcs of this Act. The Fund shall be crcdited all sums received by th€ Authority. The Fund shall b€ financcd by: (a) fees, commissions, charges and other amounts received by the Authority: (b) funds including grants provided by the Federal Govemment fbr payment of salarics, establishing infrastructure and running day+o- day business ol lho Audlority as a onc line budget; 664 THE (;AZETTE OF PAKISTAN. EXTRA-. OCTOBER 6,2O2I PART I (c) furds provided by the Provincial, lrcal CoverDmenLs or any other borly including grants; {d) funds including grants from national and intemational bodi€s / organizations; (e) loans from the Ilederal Covernnent or Provincial Covernmentr (f) loars. investrnens and foreign aid obtained by thc Aulhoriry; (c) funds raised through Public-Private Partn€rships by thc Authority; (h) firnCs from bonds. sukuks and other forms of finances ard inv:stments on thc basis oI panicipation term certificales, mu,harika certificates. t€nn financc cc(ifioates or any other finr ncial or debt mstrunrents or securities issued by the Authority; (i) proreeds ofany ilvestmenls made by the Authority in utililbg any am(,unt ofFunds which is not rcquired for immediate usc. (2) Th€ Fund will be utilized for the above purposes as per the mechanism prescribed in the rcgulations (l) Wilhout prejudice to any olher law for the time bcing in force, lhe Authority may invest in development of projects, spe€ialized firnds or financial vchiclcs or any oLher area approved by thc Authorify with fees and contributions from zone devel(,pers and zone enterprises, and wilh funds from public, private or intemational entities, and Federal, Provincial or [4cal Covemments, ro achieve objectivei ofthis Act.

10. B.trk accounB.-{l) The Autho.ity may open and maintain bank accounts in local rnd forcign currency in any scheduled benk in Pakistan. (2) Bank accounts of the Authority shall be opened with the prior approval of principal eccounti;g otTicer. ll. Approvals Com6ittce.--{ l) There shall be a comminee. called Appi(,vals Commirlee, headed by the Chairperson and up to eight rncmbers from amongst the Mi:mbers and officers of the Authorib/ nominaled by the Chairperson for this purpos€. (2) The Chairperson may call anv person or adviser or consultant as an experl to assist the Approvals Committce and such person or adviser or consultanr shall n( I be eligihlc lo cast a \ore P^.T THE GAZETTE O '] (3) The mecling oflhe Approvals Cornmittee shall be convened on the orders of the Chairperson. (4) The Appmvals Committee shau meet es frequently as required, but not less than once ercr] quaner. (5) Two thnd or more of the members shall constitute quorum of rhe Approvals Committce. (6) Wh€re Ihe Charrp€rson is not present, a Member olthe Authoriry nominated by the Chairperson shallchairth€ Approvals Commiltee. (7) The decisions of the Approvals Committe. shall be taken by majority of the total membership present through voting. In c&se ofequal votrng, the Chairpe6on of the committee shall have the discrettoo to take the final decision. (E). Ihe Chairperson shall appoint an officer from the Authority to be the Sccretary of the said Committee. (9) The Chairpersorr shall be compctent k) remove or substitute ary member of the Commirtee. if desired. (10) The Chairperson may constitute sub-commrttees to assist the Approvals Committee to discharge any of its functions.

12. Functions and Responsibiliti€s of the Approvds Committee.- (l)-l'he fuctions and responsibilities ofthe Approvals Committee shall be- (a) ro recommend such procedures, mechanisms and regulations to the Authority for implementatio[ of this Act as are applicable to all zones or a particular zone; (b) to review and rerommcnd amendments in national information and communication technology sEatcry, national emerging technologies strategy and other technology and sciencc related initiativcs; (c) to approve or amend development plan and.Master Plan for each zone: (d) lo recommend stratdgic initiatives to the Authority including, but not limired to, inteLalia. eslablishing new zones, expansion of exisrmg zones, cntering into agreement with other entities, joinl ventures, poblic-private partncrsh ips etc; 666 THE GA,:ETTE OF PAKISTAN. EXTRA., OCTOBER 6,2021 [P^Rr-l (e) to rec)mmcnd additional incentivcs for zone devclopers and zone enterpdsesl (f) to recommcnd any existing or new zone proposed by any investor, wheth.:r public or private; (g) to c.rsidcr and approve zone devclop€rs and zone cntcrprises applicltions and agreements. ll. Criteria for.pprovsl of zoEes.{ l )The Authorit} shallprescribe '.he criteria for apprr,val of zones in thc rules.

14. Licenling of zone entcrpris€s rnd zone developers.-{l) The .{uthoriry shall prescribe the criteria and procedurcs for licensing of the zone cnrerprises and /one developers in the regulations. I5. Senctions sgainst zone enterpriscs rnd mnc dcvclopers.{l) A rnechanism may be prescribed by the Authority in the regulations for sanctions, rmposition ard recovery ofp€nalties and fines a9inst zone enterprises and zone (levelopers for liolations of this Act or an) rul€ or rogulation prescribed by rhe ,\uthority.

16. Lend regime.-{ I ) Thc acquisition of any land or any interest in land for the Autho.iry or for an,v purpose under this Act shall be deemed to bc an acquisition for a putlic purpose withrn lhe meaning of thc trnd Ac4uisition Act, i894 (1 of lt94) or any successor legislatron, and lh€ provisions of the said Act shall apply accordin:lly. (2) The Federal Govemrncnt, Provincial Govemmenl Local (;ovemmenl or anv Local Authority may tmnsfq or cause the transfer of any land, prope(y, asset. infrastructure, facility to the Authority, subiect to prevailing laws. Explanalioh.:fhe expr€ssion''Federal Govemment Provinciq, (iovemmenl and Local Govemment" shall mean and include any authority, body, corporation or lcgal entity established or controlled by such Government and the rr'ord "transfcr" shrll mean and include any and all modes of Eansfer of Froperties, assets, larrd.o. infrastruclurc p€rmissible underthe laws ofPakistan.

17. Public utilitics {nd oiher fecilities.il) The Federal (iovenrment. Prov ncial Govemments, Local Covemments, Municipal Authorities, Cantonnrcnls, and other l'emtories of Pakistan, as rhe case rnay bc, shall ensura tha rem(,val ofall obstaclcs to the provision of all infrastructure and uliliry facilities- at tl eir cost, including but nor limrted to eleclricity, water, gas. n)ads, telecommuni( ation services a0d orhe. essential facrlitics necessarv for PART I] THE GAZETTE OF PAKISTAN, EXTRA., OCTOBER 6,2O2I 661 efficient opcratrons of a zone. The Federal, and Provincial Gov€mments shall ensure adequatc road access, at lheir cost, to the zones and adequate provision of zones from a safely and security standpoint. (2)lhc zonc developer shall have the righr ro set up a renewable, thermal. h:_del or other captive clectric power seneration plant or install power generator of sufficlen( size to carer the expected demand for elect icity within a panicular zone as per rul€s or regulations of rhe Aurhori(y and ro sell only rhe excess electricity generated outsidc that particular zone as pcr prevailing laws, (3) I'he Aurhority may execure agreements with the Provincial Govemmcnrs. l.ocal Govemments, Municipal Authorities, Cantonments, local authorit) and ot her 'l erritories of Pakistan for $e purpos€s of implementation of rhis section. Explanolion.:fhe expression "Federal Covemment, Provincial Govcmment, Local Govemment Municipal Authorities, Cantonments, Iocal authority and other TeFitories ofPekistan" shall mean and ioclude sny authority, body, corporalion or legal entity establishcd or controlled by such Golemment. lE. IncentivB for zoncs,-{l ) On execution of releyant age€ment with the Authority. the zone developers as well as zone enreT,riser in a zonc shall be entitled to incentives outlined in sections 20 and 21. (2) Wirh lhe objective of promoting a particular sector, industry or zone, the Authority may recommend aid the Fede.al Covemhent may grant additional incentivcs and exemptions to zone enterprises and zone developers including but not limited to subsidies for clcctricilv, gas and high speed internct coonectivity inside the sp€cial technology zones, provided th6t- (a) such additional benefits may only be granted if the Authority finds lhcsc to bejusnfied on lhe basis ofan economic impact assessment: (b) such additional b€ncfits, it granted conditionally, may be.liable to be forfened $ith rero-ective etTecl rf ir is finall) determined that 6 zone dev€lop€r or zone cnterprise has failed to comply with the conditions prescribed for thc additional benefits in question; and (c) the Authority shall make economic impact assessmcot of rhe zonc developers and zone enterprises withio five ycars from the date the agreement is signcd $ilh the zone developers, and within the first year ofoperation\ of a ,one enLerprise. (3) An.,- additional b€nefts Srant€d by the Authority- 668 IHE CA ZETTE OF PAKISTAN. EXTRA , OCTOBER 6, 2O2I IPART I (a) shall be dcemed to hc inclLrdcd in the relevant Development Agre(ments; and (b) shall become effective on such conditions as the Authoriry may stipul rte. (1) Ni,rhing in rhis Act shall br consrrucd to limit thc A'rthority ofany Federal, Provincial and Local (;ovemment Authorilv to grant such additional benefits to zone developars and zonc enterprises as are within the scope of their rresp€ctive stalutor) powers. (5) The l;late Bank of Pakislan nlay issuc special forcign cxchange rcgulations for rncentives, benefits and e\smptions as s€t out in this Acl. I9. Proacction of i[cenliv6.--{ l) Inccntivcs, bencfits and protections under this Act shlll bc additional lo all incentives. benefits and protections. which may be applrcable to zone developers and zone enterprises under genemlly applicable legislati('n and inlemational egreernents of Pakisran. (2) These inccntives shall nol bc withdrau'n or modif'ied or altered prematurcly and rs rospectively and any changc thcrein shall bc to the advantag€ ofthe zone developer snd zone enterprise and oot otherwise.

20. Er€mptions ard Incentiv€s for the Authority srd for the zone developeB.-<l) lhe following shall be lhc incentives for the Authority and zone developers ffirm the date of signrng ol thc Development Agrcemcnt, for a period of ten years'ramely:- (a) Exemrtion from all taxes under the Income Tax Ordlnance, 2001 incluoing ta). un prolitr and llains. income tax, tumover lax. withh,)lding tax, capital gains lax, income tax on dividend income and *ithholding tax on dividundl (b) Exem)tion from sales tax under the Sales Tax Act, 1990; (c) Exemt)tioi from Customs f)ut) unde. the Customs Act 1969 on the impor in Pakistan ofall Capilrrl 6oods including but not Iimited ro mateflals plant, rnachiner). h{rJwarc, cquipment and software. devic(s. instruments, accessories. attaclvncnts, building materials, materials and any orher equipme t required to perform functions o[ the Lurhority, Tones and ?one developcrs, whcther or not mrnulactured locrlly. f(,r usc in rones: (d) Exc rt)ti(,n from propertv ra\; PART I] THE GAZETTE OF PAKISTAN, EXTRA,, OCTOBER 6.2021 669 (e) Exernprion on dividend income and capital gains of any venture capital tund (whethe, local or foreign) derivcd fmm investments in the zone devcloJr€rs; and (f) permission for opening and nrnrntlining of foreiSn curcncy accounts, availability of foreign cxchangc, full convertibility to foreign currency and rcpatriation and fr€€ lmnsfer of forelgn curency to meet the requirernents ofinvestors, Iendefs, conhactors, operstoas, consultants, insureE, ae-insurers, vendors gnd advisorr in relalion to any compensalion amounts, losn repeynents, equity and retum on equity, profits, works, goods and services in rccordance with the foreign exchalge regulalions ofthe State Bank ofPskislan for zones, for lhe avoidancc of doubt, co-zone developer shall be elltitled to the ux ex€mprions and incentives permissiblc lo the zone develop€rr under Seclion 20.

21. Eaemptlons rtrd Iocc[tlve! for ,rDc !tl1!?prh.r.-{l) The lbllo*ing shall be the incentives for the zone enterprises &om the dste of issuance oflicenso lor a period often years, namely: - (s) Eremption fiom all taxes under the Income T8x Ordinsnc€, 2001 includrng tar on profits and goifls, income ltu\, lumover tax, withholding tax, capital gsins tax, income tax on dividend iflcohe an{ uithholding tax on drvidend; (b) Exemprion from sales tax under the sales Tax Act, 1990; (c) Exemption frorh Customs Duty under the Customs Acl 1969 on rhe import in Pakisran ofallCapital Coods includ'ng but not limitcd 1() ma(erials. plant. machinery, hardware, equipment and soliware, devices. instruments, accessories, attachments, building mnterials, materials and any other equipment required to perform functrons of th€ zone enterpriscs, whether or not manufactured locally, for use in zonesl (d) Exemption from property tax; (e) Tax excmption on divid€nd income and capital gains ofany venture capital tund (whether local or foreign) derivcd Fom investments in the zone enterpriscsl and (O permission for opening and maintaining of forergn curenc) accounts, availabiliry of forergn exchanBe, full convenibility to foreign currency and repatriation and frc-e tsansfer of loreign 670 THEG,\ZETTE OFPAKISTAN, EXTRA,, OCTOBER 6,202I JPART I cuni:ncy to meet the requirements ofinvestoas, lenders. contractors, operrtors, consultants, insurers, re-insurers, vendors and advisors in relatLon to any compensation amounts, loan repayments, equity and return on equilv, profits, works. goods and senices in accordance with lh€ foreign exohange regulatrons ofthe Stste Bank ofPakistan fbr zones.

22. Alt€.nrte dispu(e resolution m€chrtrism.-<l) The Authorit-v shall prescribe a l€gally binding and enforceable allemate dispure resolution mechanism consistent with fie applicable ]a*s for the settlement of all disputes arising among and befipe€n the Aulhority, zone developers or zone cntcrp|rses. (2)All rrgreements hetwq:n zone developers, its operators and sub- consultants, and zlne enterprises shall bc govemed by the afore-stated altemate dispute resolulion mechanism prescribed by the Authority: Provided hat nodring hercin shall preclude the Authority or any of its sub-ordinate cotitres or companies from entering into intemational arbitration agreements with fi,reign zone developers and zone enterprises.

23. Cogniz.trce of legrl di!put€s.--{1) No cou( shall lake cognizancc of a legal dispute uuder this Act or th€ rules or regulations mad€ thereunder to which the jurisdi.lion of the Special Technolog.y ilones Appellelc Tribunal extends. (2) the Special Technology Zones Appellate Tribunal shall have exclusivejurisdicton to determioe all dispures arising in respect ofafly matters- (a) conc,:ming any officer or emplo)ee of the Authorily with the €xcltsion of the Chairperson; (b) coilc,)rning the excrcisc of powers and functions of the Authority under'sections 4 and 5 ofthe Aci or, Adminislratm undor s€clion 26; (c) cono:ming any aspe.t relanng to the onc-windo\ry facilit_v estabLsh€d bv the Aulhoritv: (d) concr'ming any decision oflhe Approvals Committee; (e) in relation to sections 13 and l4 of rhc Acr or anv rules or recul rtions prescrib€d rhereunder: (0 conc(ming any sanction. penalo or fine irnposed by rhc Aulhoriry undcr section l5 or any rulcs or rcgulations prescribad lhcrcunder; PART I] THE GAZETTE OF PAKISTAN, EXTRA,, OCTOBER 6,2O2I 611 (g) relating to s€ction l9 ofthe Act: alld (h) concerning any other rule or regulation prescribcd by the Aurhority

24. Apnesl! lo Specirl Technology Zotres App€llrt€ Tribunrls.--{l) Any zone developer or zone enterprise or a concemed person aggrieved by any order ofthe Authoflty may prefer an appeal b€fore the Special Technology Zones Appcllate Tribunal, within thirty days of lhe order, in accordance with the prescribed rules. (2) An appeal to the Special Technology Zones Appellete Tribunal shall be in such form, conlain such particu lars and be accompanied by such . docume ts and fees as may be prcscribed under this Act. (3) The Special Technolos/ Zones Appellate Tribunal shall consist ofa Chairman, \a'ho shall be a legal experq and two members. one being a technical expen and the other heing a financial expert, who shall bc persons of ability, integrity and have special knowledge and professional experience ofnot less than ten years in the fields ofhw. economics. technology or finance. (4) The Chairman and Members of lhe Special Technology Zones Appellate Tribunal shall hold office for a period of lhree years and shall be eligible for re-appointment fo. a similar term or tefins and shall ccase to hold ofTice on attaining the age of sixty eight ycars or the expiry of the term whichcver is earlier. (5) The lerms, conditions and appointment of the Special 'llchnology Zones Appellatc l_nbunal Chairman and other hembers shall be in the manner as may b€ prescribed this Act, which may be made and shall take effec! notwithstanding anlthing contained in any other law or rules for the time being in force. (6) The Chairman and the members shall be enritled to such salary and ofier (crms and conditions ofservice as the Authoriqv may presc.ibe. (7) The Special Technology Zones Appellate Tribunal shall decid€ an appeal expeditiously but not latcr than thre€ months of it5 prescntation to the Tribunal. (8) The Speciat Technolory Zones Appellate Tribunal shall, for the purposc of deciding an appeal, be deemed to be a civil coufl and shall have the sarne powers as are vested in such court under the Code of C ivi I Proc€dure, I 90t (Act V of 1908), including the poweE of-- (a) enforcing the attcndance ofany person and examining him on oath; 672 THE C/\ZDT'I'D OIJ PAKISTAN. LX'I'RA,, OCTOBER 6, 2O2I ART I (b) com rlling the production ofdocuments; and (c) issuirg commissions forthe sxarnination ofwitnesscs and documentj (9) lt shall be sufflcient for dre Special Technolog;v ;t-oncs Appellstc Tribunal to eslabl sh, or to be satisfied as to afly matter on the standard ofProof spplicEble to civil proccedin8s in summary manner in a coun of law. ( l0) The Special 'fechnology Zoncs App€llate Tribunal's determinations or decisions under this Act shall bc dcerned (o be the decrucs ot a civil coun under the Code o[Civil Procedure, l90E (Act V of l90E). Explonation.-ll is claified lhat th€ limefiame for rendering a decision ofthree months is mandatory and nol direcrory.

25. Apperl to Supreme Court.--{l) Any petson aggricved by an order of the Spec al lechnology Zoncs Appellare Tribunal may pr€fer leave to appcal to the Surrcme Court of Pakrstan wrthin sixty days under the rules prescrihed b1 the :;uprsme Coun.

26. App)irtmert etrd PoryeE of Admirbt.rror,-{l) The Authority may Ep[,oint 6ny (me or more p€tsons an Adhiuistrator to investigatc, either on ib own motion ,)r on the basis of any informstion receivcd, *hether any conlmvention of i.ny provision of or anlthing prescribed by this Act has been committed. Provided that an Administrator's investigation shall be canied in the msnner prescribed (2) Whe'e ar Administrator, after concludin8 an investigation is sslisfied that a corfravention of ary provision of or anything prescribcd by this Act has been committed, may rccommend to the Autlority to undertake any of the lbllowing in the manner prescribed: (a) impos€ a fine on or sanction any person resF,nsible for such contavention; (b) canc,:l an:_ license issued by the Autlority to ary persod resp(,nsible for such contravcntion; (c) issue dircctions to any zone developer. co-zone dcvcloper, or zone enlerorisc to ceas€ from doing any part,cular act in a zone.

27. Powi.rt ao mrke rule!.-< I ) Th€ Authority may- n ilh the approval of the ljederal Co, cmment. make ml€s, on the matters as deemed nec€ssarr. for irrrplementation anJ to can-1' out the purposes ofthis Act. PAR,T II IHF GAZETTTOT PAKISTAN. EX]RA,,OCIOBER 6,202I 613 (2) Until the rules r€fenEd to i[ sulr.rcqon (l}ateln6de, the President of the Board shall be compctcnt to determine, the terms and coaditions for appoinlment of the Chairperson, Members, Exaputive Direclors, officers and ernployees of the Authority.

2E. Powcts lo mskc rEgulrdon!.-{ l) The Authority may, with the approval of lhe Board, make re8ulations a.6..deemsd re@ssary [or the implemcntation ofatld 10 carry out the purposes ofthis Act.

29. Annud report.-{ I ) The Authority shrllprEparE and slrbmit to dle Board, within four honths of the expiry of eoch fin0ncial year, a rEport oa the conduct ofits func(ions and atTairs lbr that yeaI (2) Esch such annual repon shall rnclrd.- (a) ar audited statement ofincome and expenditure; (b) an audited balance sheel; (c) a sho( financial slatement ofpr€c€din8 financial yeBr; (d) activities ofthe Authority duriDg pr€vious financislyear; (e) an outline of the invcstmenl programs for the year ehead; and (0 any other mattcr which thc lcdcral Govemment may direct or the Authority may consid€r sppropriate.to ru&ke its, Fport more s€lf- sp€alin8 about its initiativ€s and aohievernents.

30. D€lcgarion ot porxcE,-{ I ) The Authority may doleBare any of its powers and assign its Functions subject to such oonditions 6s it may deem fit to impose, to the Chairperson, Approvols Committ€€ or 4lty othel committee. ll. Rccruitment.-< I ) Thc Authority may, from time to time, create, sa4clron and approle posts and dctermine the need to employ and appoint such Members, oflicers, members of its slarl advisers, conBultants, and other employces. as i1 considcts necessary for efficienl perforrnance o[ iB functions on such terms and conditions as may be prescribed by rEBulation\ provided thst all appolntments shall be made in accordance wirh the prescribed educational, technical or profcssional qualificalions and expe encei Provided that the r€Sulations, orders, instructions for the time boin8 rn force goveming all appointments afld terms of service of employeqs of thF Authority shell be mntradual and non-statutory. 674 THE G,\ZEITE OF PAKISTAN, EXTRA-, OCTOBER 6.202I [PART I 32. linl'loyee of the Authorit-v to b€ public rcnaots.--{l) For rhe pu.poses of lhis 1\ct the Chairperson, Members, Executive Directors and orher Omc€Is, stafl adr isers, consultants and experts of.the Authority shall be deemed lo be public servrnts withjn the ntcaning of secrion 2l of the Pakistan Penal Codc, lt60 (Act )iLV of 1860).

3J. Ar.iitrnce lrom .gencicr,-{l) Notwithsranding anything contained iE{ny )ther lew for the tilne being in force, the Authority may s€ek any assistancc or nformation from anv person including but no( limited lo, any Ministry, Division, departnent, statutory body, corporation, agency ol lhc Federal, ProvrncirLl or tocal Governments which, in its opinion. concerns any matter relating to Jhe smooth fuflctioning of the Authorilv and rhe requisite assistsnce or info.mation, whatever the case may be. shall be provided to lhe Authority within the time frame stipulated by it. In cases where cons€nt is souBht- and it is lot received within the stipulated timc- it shall be deemed as approvei afur cor4plelion ofthe stipulared rime.

34. Pubric Sector znd strtGowned nlrcrprires hvestmetrts in zones.-{l) Notwithstanding any prohibition or limitation contained in any law, rules regulations, directives or inskuctions for lhe time being in force, all nublic sector authoritres. departmeflts, agencies, funds, statutory and non-statutory dies, othe. authlritier and state.-owned enterpris€s established or confrolled by the Fedcr.l, P.ovincial or t-tral Governtnent ma), with the approval of their compeGnt authorities, invest in the TDnes after due consultations with lhc Authority.

35. Ernt oymelt of Kty P.nort.-{l ) Notwithslanding an)thrn8 containcd in an] odrcr law, the Authority mey issue special rules for lhe emplo),ment by ?ofle develop€rs and Tone enterpris€s of key mamgerial and t€chnical p€rsons who are not citizens of Pakisran, relating to the terms and conditions of thc r eontracts as well es with respct to the issuance of visas, tempora4v residerc€ permits and temporary work permits for such key persons and fteir dcpende rts.

36. Idrnnity-{l) No suit, prosecution or other legal proce€dings shall lie agsinst the Board, Authorib', the Chairperson, Membe6, Executive Din:clors. oftic€rs. the employees and consultants of rhe Au$orit-v and its subsidieries for ar,1hing done in good laith or intend€d to be done under thrs Acr or an)'rule or regulalion made &ereunder.

37. S[rs pryeble to the .{uthority to be reco}'erable .s lsnd rcvenoa,-{ I ) All sums payable to the Authority in accordanc€ with drc provisrons of this Act and the rules or re8ulalions shall be recoverable as arrears of land revenue. PART I] THE GAZETTE OF PAKISTAN, EXTRA., OCTOEER 202t 675

38. A.t to oycrride other lews.-{ I ) The provisions of this Acr shsll have effect notwithstanding anything to the conlmr-v conlainod in any orher law for the time being in force and any such law shall, to lhe extent of any in consistency, ceas€ lo have any effect on the commencemenr ofrhis Acr.

39. Jurisdictior Bsrr€d.-{l) NoNithstanding anything contained in any olher law. lhc powers and finctions of thc relales to the national $curity of thc Palislao and therefore shall not b€ ^uthoritv crlled into question through any criminal or civil proceedings or otherr*lse by atry agency. Save as provided under this Act, no order made or procecding takcu under lhis Act, nrles or regulations made thcreunder by the Authority or any olliccr or Authoriry authorized by il shall be callcd in question in any court or administrative tribunal and no injunc(ion shall bc grant€d by such cou.t oa tribunal in respect of any decision made or proc€edings laken in pursuance of any power conferred by or underthis Act, rules or regulations made thereund€r. l)

40. Removet of dimcrties.--{ lf any difficulty arises in giving effect to a y of the provisions of the Aet, the Federal Govemm€nl may, within one year of the commencement of this Act, rhake such ord€r, not in-consis!€nt with th€ provisions ofthis Act, as may appcar lo it to be necessary or expedi€nt for the purpos€ ofremoving such dilfr€ulty-

41. Rcpe{l rnd !rvin8!--{l) I'he SFcial Technology Zones Authority Ordinance, 2020 hereinafter referred to as the repealed Ordinanc€ is he.eby r€pcaled. (2) Nohyithslanding the rEpeal of the repcsled Ordrnance or an),thing conrained herein-befor€, all ordcrs made, decisions 6k€n, rulcs or regulatioos made or amcndcd, notifications issued, actions rak€n, appointmcnls made by the Authorily, thc Prime Minisler or the Presidenl of the Board, and the Board, pursMnt to the repealed Ordinance, shall be deemed always to have been lasfrlly end validly made, lakcn, or issued under the p.ovisions of this Ac! shall condnue to b€ in force unless amended. varied, withdrawn, rescinded or annulled by a p€rson or authoriF comp€lent to do so under this Act, and shall no( be called in qucstron b€fore any Coun ofLaw. (3) Ali assets, rights,. powers, suthorilies ard privileges and all propeny. cash and bank balanccs reserve funds, invesrmenl and all other interEsts and rights in or arisin8 out o[ such proFrty and all d€bls, liabilities and obligations of u'hatever kind of the forme. Authority subsisling immediatcl)' before its dissolution shall stand ransferred to and vest in Authority constituted under this Act. (4) NotwithstandinB anylhing contained in this Acl or any other law for the time berng in force or in an1'agreement, dced, documenl, or othe. insEumenl 616 THE 6/ZETTE OT PAKISIAN, EXTR ., OCTOBER 6,2O2I ARl I sll olllcers, consu tonts, adviserc; auditors lnd other employccs and slaff of rhc former Authority lhall staDd frcnsferred ro and be office$, consultants, advisers. audirors and empk yers and slaffof Authority. Providcd lhal lhc Charrperson and Members ofthe Aulhonly on thc dale hereof shall be dee med to be tlle Chairpcrson and Members ofthc Aulhoriry. (5) The t)ersons fient ioned herein-above sholl be deemed to have becn a[rpointed or engrged by A lhorily in accordance with the same terms and conditions of s€t',icc as werc dpplicable lo lhem, immediately before such contihuaflce in offiee or tmnsfer: ' Prdviied thal the civil scavants appoinred to or workind in fie former Authority shall upcn thcir'trAnsfer to the Authority continue to ttc govemed by lhe federal civil se,vants laws andrrules made drer€under; (6) All detts aird obhgations incurred, or contmcts €ntered into, righta lcquiredi snd'etl lianers ind things engagcd to be done by, wilh o. for the fomer Authority drsll b,) Aeemed lo hove bcen incuned entercd into acquired or eagsged lo be dofi by, with or tor the Authorit). (?) All suils and olher legal proceedings instituted by or E8ainst the forindr Authority b€fore its r€p€al shall be deemed to be suits and proceedings by oi against the Authority and shell bc procceded or otherwise dealt with accordingly. (8) All irclions tak6n by thc tloard, the Authority, Chairperson, Menitrers, thc offir,ers and employees of lhe Authority between the lapse of rhe ffiinanca and ena:tm€nt sre savEd and not lcgally challengeable. (9) Any eference'to the former Authority in any slalutory instrument oi document shsll, unless fte iodtext otherwise requires, h€ rcad and conshued ss tefef,cnce to be AuitoritY. MOHAMMAD QASIM SAMAD KHAN, Secretory PRIN'IM BVTHT M NA6En' IIRINTIITGCORA)R^II(I\ !F JJAXISTA'\ I{ESS. ISL^M^B,{Il PUELISNEDBYTI]E D }U TY CO\TTROLLM. STATX )\ I II Y \ D TI ]N!'S, UNIVFRS IY RI'AII I(^X]{CHI ^