ISLAMABAD: The federal government has reaffirmed its commitment to promoting innovation, technology investment and digital economic growth by continuing support for the Special Technology Zones Authority (STZA) in the FY2026-27 budget.
According to the Annual Budget Statement 2026-27, the government has allocated Rs563.849 million for the development expenditure of the Special Technology Zones Authority, primarily for infrastructure development at Islamabad Technopolis, a flagship technology zone project aimed at attracting high-value investment and fostering innovation.
The budget documents show that development spending for the project has increased substantially from the revised estimate of Rs99.489 million in FY2025-26, reflecting renewed focus on strengthening Pakistan’s technology ecosystem. Most of the allocation will be directed toward civil works and infrastructure development at Islamabad Technopolis.
The government’s medium-term plans envision further growth in technology zones and business activity. Budget targets indicate the number of licensed entities operating in Special Technology Zones is projected to rise from 125 to 190 in FY2026-27, while the number of technology companies operating in the zones is expected to increase from 250 to 320. Functional technology zones are also projected to expand from 18 to 22 during the same period.
The budget framework also projects exports generated by zone enterprises to rise from Rs23 billion to Rs30 billion in FY2026-27, highlighting the government’s objective of using technology-led exports as a key growth driver. Investment projections linked to the zones are expected to increase from Rs105 billion to Rs140 billion.
In addition, the government plans to complete key infrastructure milestones at Islamabad Technopolis and fully implement its One Window 2.0 digital platform to streamline licensing, monitoring and investor facilitation services.
Officials say the continued investment in Special Technology Zones reflects Pakistan’s broader strategy to attract domestic and foreign technology investment, encourage innovation, support startups and position the country as a competitive destination for knowledge-based industries.
