Pakistan Moves to Scrap Business Rules That Discourage Foreign Investors

The Pakistani federal government has approved approximately 170 amendments to the Companies Act 2017 with the aim of simplifying company registration, cutting compliance costs, and making it easier to conduct business in the country. Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan highlighted that cumbersome regulations and overlapping requirements had deterred foreign investment and impeded business operations.

The government's objective is to streamline processes, eliminate superfluous obstacles, and modernize the nation's corporate regulatory system. Khan disclosed the proposed bill at a press conference on Friday, announcing its submission to Parliament. Targeted Regulations Under review are sectors such as dairy, maritime, beverages, oil refining, pharmaceuticals, and restaurants, with the aim of identifying redundant requirements and refining procedures.

Consultation The government has studied regulatory systems in Delaware, United States, the United Kingdom, and Canada to guide its proposed reforms. Around 60 to 70 percent of the overall reform work has been completed, with proposals from various institutions suggesting the removal of about 70 to 75 percent of unnecessary or redundant regulations.

Integrated Portal To facilitate regulatory procedures, the government is developing a proposed Asaan Karobar Act, which includes an integrated digital portal. This platform would enable businesses to submit applications and interact with provincial authorities and regulatory bodies through a single point of contact, reducing the necessity of visiting multiple departments.

Standardization of Inspections Khan further explained that the government is reviewing industrial inspection procedures to reduce overlapping inspections while maintaining essential regulatory oversight. The reforms are set to extend across provinces, with coordination efforts underway with provincial administrations, including Gilgit-Baltistan and Azad Jammu and Kashmir.

External Support An international consultant with expertise in regulatory reform across 135 countries has been engaged to support the reform process. Government Motivation The reforms are intended to lower the cost of doing business, encourage domestic and foreign investment, bolster industrial growth, and generate employment opportunities.