Pakistan’s Foreign Exchange Rules Set for Major Changes

The legislative review committee of Pakistan's federal cabinet has greenlit amendments to the nation's foreign exchange laws, updates to Armed Forces retirement leave rules, and a legal overhaul transferring plant protection duties to a new regulatory body. On Friday, the Cabinet Committee for Disposal of Legislative Cases convened under the leadership of Law and Justice Minister Senator Azam Nazeer Tarar to discuss these proposals. The approved measures will soon be handed over to the appropriate entities for additional review.

The committee backed the Foreign Exchange Regulation (Amendment) Bill 2026, which aims to overhaul the legal framework governing penalties and monetary fines for breaches of foreign exchange regulations. Additionally, the committee approved modifications to the foreign exchange regulations' references to the federal government in various laws overseen by the Securities and Exchange Commission of Pakistan (SECP), replacing them with the names of the relevant competent authorities.

Furthermore, the committee approved a proposal concerning leave prior to retirement for Armed Forces personnel, which also provides for payments in lieu of the unused portion of retirement leave. The meeting also gave the green light to a comprehensive legal and administrative package for transferring plant protection functions to the National Agriculture Trade and Food Safety Authority, which includes amendments to relevant plant protection rules and the arrangements for transferring the associated legal documents.

However, the committee held off on approving the draft Press Council of Pakistan Act 2026, deeming it necessary for further consultation.