Govt unveils 170 tweaks to Companies Act

ISLAMABAD: The government has introduced 170 amendments to the Companies Act 2017 to streamline company registration and business operations, modernize Pakistan's corporate regulatory framework, and boost foreign investment. Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan revealed these changes at a news conference, alongside representatives from Gilgit-Baltistan.

The adviser cited regulatory complexities and difficult business conditions as major deterrents to foreign investment. Over 78 years, laws have been enacted to meet various needs, but recent amendments have led to unnecessary complexities and overlapping requirements, hindering efficient business operations. The federal cabinet has approved the amendments, and the bill has been forwarded to parliament.

Khan highlighted that regulatory reviews are underway in sectors such as dairy, maritime, beverages, oil refineries, pharmaceuticals, and restaurants, with the goal of identifying redundant requirements, streamlining procedures, and ensuring regulations serve legitimate public and economic interests without imposing excessive burdens on businesses.

The government has studied international regulatory systems, particularly those of Delaware in the US, the UK, and Canada, to guide the proposed reforms. Approximately 60-70% of the reform process has been completed, with proposals recommending the elimination of 70-75% of unnecessary or duplicative regulations. The government is establishing an integrated, single-window digital portal to allow businesses to submit applications and connect with provincial authorities and regulatory bodies, aiming to reduce the need for multiple visits to different departments and simplify regulatory procedures.

The reforms are designed to create a more predictable, investor-friendly framework for businesses, promote domestic and foreign investment, and facilitate industrial expansion and job creation in Pakistan.