ISLAMABAD: The International Free Zone Authority (IFZA) has signed a Memorandum of Understanding (MoU) with Pakistan’s Board of Investment (BoI) to set up a Free Zone Authority in the country, aiming to boost foreign investment and promote economic diversification. The signing ceremony, held in Islamabad, was attended by high-ranking officials, including Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar, alongside senior ministers and government representatives.
The MoU was formally signed by Martin Pedersen, Chairman of IFZA, who expressed optimism about the venture’s potential to transform Pakistan’s business landscape. Prime Minister Shehbaz Sharif urged both parties to expedite the process by finalizing and signing the definitive agreements within the next two weeks to fast-track the establishment of the Free Zone Authority.
The creation of this Free Zone Authority is seen as a significant step forward for Pakistan’s economic strategy, focusing on attracting foreign direct investment (FDI) and expanding the country’s economic base. Leveraging IFZA’s extensive international network, the new Free Zone is expected to draw interest from established businesses, investors, high-net-worth individuals, and global talent. This move aligns with the government’s broader vision to position Pakistan as a regional hub for trade, technology, and finance.
Martin Pedersen, speaking at the event, highlighted the significance of this partnership, stating, “I am delighted to be here today for this historic signing of a Free Zone Authority in Pakistan. The International Free Zone Authority will establish a streamlined process for business licensing, company formation, and registration of branch offices of foreign companies in Pakistan, bringing business leaders, entrepreneurs, and Foreign Direct Investment into the country.”
“This will significantly help to stimulate domestic growth and entrepreneurship by supporting business momentum and empowering the next generation of Pakistan’s entrepreneurs and business leaders to thrive and prosper,” he added.
The collaboration with IFZA, one of the world’s largest free zone entities, is expected to infuse global expertise in free zone development into Pakistan. IFZA’s contributions to Dubai’s economy, accounting for approximately 4.5% of its GDP and generating $6.5 billion in FDI annually, underscore the potential benefits for Pakistan. The Free Zone Authority will focus on simplifying procedures for business licensing, company registration, and branch office setup for foreign entities, thereby reducing bureaucratic hurdles and fostering a more business-friendly environment.
By integrating IFZA’s global standards and practices, Pakistan aims to attract businesses from diverse sectors, including digitalization and AI, reinforcing its ambitions to become a regional leader in these fields. The Free Zone Authority is also expected to streamline regulations, enhance ease of doing business, and attract international investments to support economic growth.