The Board of Investment and the International Free Zone Authority (IFZA) have signed a Memorandum of Understanding (MoU) to establish a Free Zone Authority in Pakistan. The signing ceremony, held in Pakistan, was attended by senior government officials, including Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar, alongside high-level delegations from both parties.
The MoU was formally signed by IFZA Chairman Martin Pedersen in the presence of the Prime Minister. During the event, Shehbaz Sharif urged both parties to finalize and sign definitive agreements within the next two weeks to expedite the project’s implementation. The establishment of a Free Zone Authority is expected to play a vital role in diversifying Pakistan’s economy, strengthening its economic infrastructure, and fostering growth in key sectors.
Driving Investment and Economic Growth
By leveraging IFZA’s extensive global network, the Free Zone Authority aims to attract established businesses, investors, high-net-worth individuals, and world-class talent to Pakistan. This initiative is set to boost foreign direct investment (FDI) and support economic diversification. IFZA, a major free zone entity contributing approximately 4.5% of Dubai’s GDP and generating $6.5 billion in annual FDI, will bring its expertise in free zone development to Pakistan.
The Free Zone Authority will focus on key industries, including trade, technology, and finance, positioning Pakistan as a regional hub for digitalization and artificial intelligence (AI). By streamlining business licensing, company formation, and foreign company registrations, the initiative will create a more business-friendly environment and foster entrepreneurship.
A Vision for Pakistan’s Future
Expressing his enthusiasm for the partnership, IFZA Chairman Martin Pedersen stated:
“I am delighted to be part of this historic agreement. The Free Zone Authority will simplify business licensing and company formation while attracting global investors, entrepreneurs, and business leaders to Pakistan. This initiative will not only stimulate economic growth but also empower the next generation of Pakistani entrepreneurs to thrive and succeed.”
The establishment of the Free Zone Authority marks a significant step toward positioning Pakistan as an attractive destination for international investment. By fostering a dynamic business ecosystem, the initiative is expected to generate substantial economic benefits for the government, businesses, and citizens alike.
