Introduction

Agri Techpark Introduction

University of Agriculture Faisalabad-Pakistan Special Technology Zones Authority (STZA) is an autonomous body established under the Cabinet Division, Government of Pakistan, with the Honorable Prime Minister of Pakistan as the President of the Board of Governors (BoG) of the Authority. STZA has been mandated to promote the knowledge-based innovation ecosystem through the establishment of Special Technology Zones (STZs) across the country. STZA aims to provide institutional and legislative support for the technology sector by providing fiscal and forex incentives under STZA Act 2021, to attract foreign direct investments, incentivize futuristic entrepreneurship, enable job creation, and commercialize technological knowledge. On August 31, 2022, STZA has notified the University of Agriculture Faisalabad as Pakistan's 1st AgriTech Park.

Special Technology Zones Authority (STZA)

STZA

Special Technology Zones Authority (STZA) is an autonomous body established under the Cabinet Division, Government of Pakistan, with the Honorable Prime Minister of Pakistan as the President of the Board of Governors (BoG) of the Authority.

STZA has been mandated to promote the knowledge-based innovation ecosystem through the establishment of Special Technology Zones (STZs) across the country. STZA aims to provide institutional and legislative support for the technology sector by providing fiscal and forex incentives under STZA Act 2021, to attract foreign direct investments, incentivize futuristic entrepreneurship, enable job creation, and commercialize technological knowledge.

On August 31, 2022, STZA issued zone notification to the University of Agriculture Faisalabad as Pakistan's 1st AgriTech Park.

The University of Agriculture Faisalabad has been notified for zone developer to develop, operate and managing infrastructure inside STZ. In addition to existing infrastructure at the main campus, the University has sufficient land measuring 200 acres in Faisalabad (about 3 KM from M-4 CPEC Route) for Zone Infrastructure Development of AgriTech Park.

STZA Licence Types

STZA License Types

Zone Enterprises

ZONE ENTERPRISES are entities licensed to operate inside STZs and are mandated to foster innovation, entrepreneurship, R&D, and create tech jobs.

Examples:

Tech Companies, Startups & SMEs, Universities, VC Firms, R&D Units, Advanced Production Units, BPOs, etc.

Zone Developers

ZONE DEVELOPERS are licensed companies responsible for developing, operating, and managing infrastructure inside a STZ.

Examples:

Agritech Parks, Science & Technology Parks, Software Technology Parks, Co-working spaces, etc.

Priority Areas

1

Mechanization/Precision Agriculture

2

Inputs (Seed, Bio-Fertilizer, Pesticides, Agro-Chemicals etc.)

3

Biotechnology/Vaccines

4

Value Addition

5

Energy

6

ICT/Data Warehouse

Offerings and Features

The AgriTech Zone offers various opportunities for companies and individuals in the agricultural technology sector:

Plots

Plots for manufacturing and production lines are available for a lease period of 33 years. Plot rentals are listed as Rs. 70/- per square foot annually, or approximately Rs. 3.049 million per acre (USD 10,750 Approx.).

Prospective Features:

Manufacturing/Production Lines

Research & Development Facilities

Training and Skill Development

Technology Incubation

Access to Resources (Hi-tech farms and farmers)

Agtech and Multinational Companies presence

Access to high-end Agricultural Infrastructure

Networking and access to clients

STZA Incentives

Operationalized under the STZA Act, 2021, these incentives aim to attract foreign direct investment and boost the technology ecosystem in Pakistan.

Category Incentive Details
Fiscal Exemptions
  • Exemption from tax on profit and gains for 10 years.
  • Exemption from minimum tax for 10 years.
  • Exemption from customs duties, income tax, and sales tax on the import of capital goods for 10 years.
  • Exemption of income tax on dividends and long-term capital gains of Venture Capital (VC) Funds from their investments in Zone Enterprises.
Forex Regime
  • Eligibility for a Special Forex Currency Account.
  • Funds can be fed with proceeds from abroad without the need for conversion to PKR.
  • Legitimate payments abroad are permitted from these accounts without SBP approval.
  • Local payments from the special forex accounts are permitted in PKR.

All exemptions are valid for a period of 10 years from the date of license issuance.

Focused Areas

Focused Areas

Mechanization/Precision Agriculture

Inputs (Seed, Bio-Fertilizer, Pesticides, Agro-Chemicals etc.)

Biotechnology / Vaccines

Value Addition

Energy

ICT/Data Warehouse

Zone Development Plan

Business Space

Office Space / Startups

R&D Facilities

Purpose Built Facilities

Manufacturing

Production areas

Training

Training Facilities

Future Plan

Expansion & Growth