The government is finalizing a new industrial policy designed to protect industrialists and exporters from direct interference by investigative agencies, including the National Accountability Bureau (NAB), the Federal Investigation Agency (FIA), and the Federal Board of Revenue (FBR). The move aims to create a business-friendly environment and enhance export growth.
At the prime ministerial level, it has been decided that any action against regulated entities will first require approval from the Securities and Exchange Commission of Pakistan (SECP). Proposed amendments to Section 41B and Section 42A of the SECP Act 1947 mandate that agencies secure SECP approval before initiating inquiries, investigations, or proceedings against regulated entities such as stock exchanges, depositories, clearing houses, insurance companies, and NBFCs. Foreign investors, including NICOP holders, will also be explicitly safeguarded from arbitrary action.
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To further support industry, the FBR has pledged to release billions of rupees in pending refunds, including sales tax, customs rebates, and income tax. Exporters will also benefit from simplified procedures and a limit of one audit every three years.
The Ministry of Commerce and Finance Division will soon announce a new Drawback of Local Taxes and Levies (DLTL) scheme to provide relief. Additionally, once fiscal space allows post-IMF program, the government plans to align minimum tax rates for exporters with other businesses to remove existing anomalies.
Recognizing weaknesses in the current insolvency framework, amendments will be introduced to the Corporate Rehabilitation Act, 2018 (CRA 2018) and the Corporate Restructuring Companies Act, 2016 (CRCA 2016). These changes will expand the scope of eligible debtors, protect struggling companies, and streamline restructuring processes. Officials stressed that the updated framework will provide a more cohesive and cost-effective solution to insolvency challenges.
