The Lahore Development Authority (LDA) has informed the Punjab government that special economic zones (SEZs) cannot be exempted from land conversion fees under the existing legal framework. The authority said no provision in current laws, rules or regulations allows such an exemption.
The LDA conveyed its position while responding to a summary moved by the Industry, Commerce and Investment Department, which had sought the authority’s views on waiving the fee. The summary followed a provincial cabinet decision taken on October 6, 2025, approving a conditional waiver of land conversion fees for SEZs established under the Special Economic Zones Act, 2012.
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According to the summary, the industries department later realised that land conversion might not be required for notified SEZs under the Act. It noted that several federally approved SEZs fall within Lahore division, including areas under the LDA’s jurisdiction.
The department argued that SEZs are notified and approved by the federal government through the Board of Investment after scrutiny of their master and business plans. It further cited provisions of the SEZ Act, stating that it overrides other laws and defines SEZs as designated areas for industrial, commercial and economic use.
However, the LDA maintained that exemption from land conversion fees was not possible without changes to its governing framework. It clarified that such an exemption could only be granted if the land was declared an industrial zone in Lahore’s master plan or if the land use rules were amended.
The summary presented two possible options to the government. One option suggested moving a separate summary to amend land use rules across all development authorities and local governments. The second proposed directing the LDA to incorporate notified SEZs into its master and land use plans.
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An LDA official said the authority could not waive the fee without amending the rules and obtaining approval from its governing body. LDA Director General Tahir Farooq said land conversion fees were a major source of income for the authority and any reduction or waiver would require formal amendments to the rules.