LAHORE: The Lahore Development Authority (LDA) has informed the provincial government that special economic zones (SEZs) cannot be exempted from land conversion fees under existing laws, rules, and regulations, as no such provision currently exists. The authority has maintained that any exemption or reduction can only be granted through amendments to land use rules or by declaring the relevant land as industrial in Lahore’s master plan.
The clarification was given by the LDA in response to a summary moved by the Punjab Industry, Commerce and Investment Department, which sought the authority’s views on granting a waiver of land conversion fees for SEZs. According to sources, the summary referred to a decision taken by the provincial cabinet in its meeting on October 6, 2025, approving a conditional waiver of land conversion fees for all SEZs established in Punjab under the Special Economic Zones Act, 2012.
Following the cabinet’s directions, the industries department initiated work on amending land use rules applicable to various development authorities and local governments. During the process, it was noted that land conversion might not be required for SEZs notified under the SEZ Act. The department also pointed out that several federally notified SEZs fall within the Lahore division, including areas under the jurisdiction of the LDA.
The summary argued that all SEZs are approved and notified by the federal government through the Board of Investment after scrutiny of their master and business plans. It further stated that the SEZ Act overrides other laws and defines SEZs as geographically delimited areas approved for economic, industrial, and commercial use.
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The LDA, however, did not agree with the department’s request for exemption. It proposed two possible courses of action for the government. Under the first option, the government could follow the original cabinet decision and move a separate summary to amend land use rules of all development authorities and local governments. Under the second option, the LDA could be directed to incorporate notified SEZs into its master plan and land use plans. Until such formal integration, SEZs within LDA jurisdiction could be treated as approved industrial estates for planning purposes.
LDA puts forward two options to govt for exempting SEZs from the fee. https://t.co/hK5Co59RZo
— Dawn.com (@dawn_com) December 31, 2025
Despite outlining these options, the LDA reiterated that it could not grant a waiver under existing rules. An official source said there was no legal provision allowing fee exemption and that such a step would require approval of the LDA governing body and amendments to the relevant regulations.
LDA Director General Tahir Farooq said the authority could not waive land use conversion fees for SEZs under current rules, adding that the fee constituted a major source of revenue for the authority. He said any reduction or exemption would only be possible after formal amendments to the rules.
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