Digital Economy Growth

SPECIAL TECHNOLOGY ZONES AUTHORITY ACT, 2021   The Special Technology Zones Authority Act, 2021, is a significant piece of legislation in Pakistan that establishes the Special Technology Zones Authority (STZA) and provides the legal framework for the development and regulation of special technology zones. This act is designed to promote technology-based industries, innovation, and economic growth within the country by creating specialized zones for technology-related businesses and activities. Short title, extent and commencement. Definitions. Establishment of the Authority. Powers of the Authority. Functions of the Authority. Board. Budget, finance and audit. Grants. Funds. Bank accounts. Approvals Committee. Functions and Responsibilities of the Approvals Committee. Criteria for approval of zones. I4. Licensing of zone enterprises and zone developers. Sanctions against zone enterprises and zone developers. Page 2 of 23 Land regime. I7. Public utilities and other facilities. Incentives for zones. Protection of incentives. Exemptions and Incentives for the Authority and for the zone developers. Exemptions and Incentives for zone enterprises. Alternate dispute resolution mechanism. Cognizance of legal disputes. Appeals to Special Technology Zones Appellate Tribunals. Appeal to Supreme Court. Appointment and Powers of Administrator. Powers to make rules. Powers to make regulations. Annual report. Delegation of powers. Recruitment. Employee of the Authority to be public servants. Assistance from agencies. Public Sector and State-Owned Enterprises Investments in zones. Employment of Key Persons. Indemnity. Sums payable to the Authority to be recoverable as land revenue. Act to override other laws. Page 3 of 23 Jurisdiction Barred. Removal of difficulties. Repeal and savings. Page 4 of 23 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 eco-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 incidental thereto; It is hereby enacted as follows:___ 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. 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 provisions 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 equipment 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; Page 5 of 23 (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 single-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; Page 6 of 23 (r) “Technology Sector” includes one or more technology sectors prescribed by the Authority under the rules; (s) “zone developer” means s 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 may be geographical or virtual, new or existing or expansion of