Pakistan to Scrap Business Rules in Major Overhaul
Pakistan will scrap up to 75 per cent of unnecessary business rules after the federal cabinet approved 170 amendments to the Companies Act, 2017, in a sweeping attempt to cut the cost of doing business and win back foreign investment. The Pakistan business rules overhaul was announced by Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan at a news conference on Friday, and the bill has been forwarded to Parliament.
Khan said complex regulations and overlapping requirements had discouraged foreign investment and made it harder for businesses to operate efficiently. The government aims to simplify procedures, remove unnecessary hurdles and modernise the country’s corporate regulatory framework.
Pakistan business rules: what changes
The 170 amendments are designed to make company registration simpler and to cut compliance costs for firms. Khan said the reform process has already made substantial progress, with about 60 to 70 per cent of the overall work completed.
Proposals submitted by various institutions recommended removing an average of 70 to 75 per cent of unnecessary or duplicative regulations, he said. A comprehensive review of regulators, laws and regulations affecting businesses across the country is under way.
“Over the past 78 years, laws and regulations have been introduced to meet various needs. However, over time, unnecessary complexities and overlapping requirements have accumulated, making it difficult for businesses to operate efficiently,” Khan said.
Regulatory reviews are under way in sectors including dairy, maritime, beverages, oil refining, pharmaceuticals and restaurants. The aim is to identify redundant requirements and streamline procedures, so that rules serve genuine public and economic interests without imposing needless burdens.
Benchmarks from abroad
The government studied regulatory systems in Delaware in the United States, the United Kingdom and Canada as benchmarks, and engaged a senior international consultant with experience in regulatory reform across 135 countries.
Khan said the government was working to align federal and provincial reforms so that businesses across Pakistan operate in an environment that is simpler, more transparent and more consistent. Coordination covers the provinces as well as Gilgit-Baltistan and Azad Jammu and Kashmir.
“Our objective is to make investment easier, reduce the cost of doing business and restore the confidence of both domestic and foreign investors. Businesses should be able to focus on production, innovation and expansion rather than navigating unnecessary procedural hurdles,” he said.
A single window for business
The government is also working on the proposed Asaan Karobar Act to simplify regulatory procedures and create a more predictable business environment. Plans include an integrated digital portal that would let businesses submit applications and connect with provincial authorities and regulatory bodies through a single platform, reducing the need to visit multiple departments.
Industrial inspections are a central target. Businesses can face inspections from multiple departments covering labour, environmental protection, fire safety, buildings and boilers. The proposed reforms aim to reduce overlapping inspections while maintaining essential safeguards.
Prime Minister Shehbaz Sharif is personally overseeing the reform agenda, holding review meetings every two weeks to track progress, according to officials. Implementation of several proposed reforms has already begun.
The push fits a wider reform story that Feature Pakistan has tracked this year. The World Bank has argued that Pakistan can triple incomes by 2050 with faster reforms, and the government has moved in parallel to increase fines for vehicle overloading as part of a broader clean-up of rules that raise costs for firms and households alike. Energy costs are part of the same squeeze, with oil shipping costs hitting $254,000 a day amid Hormuz attacks.
What happens next
The bill now goes to Parliament, where it must be passed before the 170 amendments take effect. The Asaan Karobar Act is still being developed, with its rules being framed alongside the single-window portal.
For businesses, the test will be practical: whether registration gets faster, whether duplicate inspections stop, and whether the promised single portal replaces visits to several departments. The government says the reforms are intended to lower the cost of doing business, encourage domestic and foreign investment, strengthen industrial growth and create jobs.
Frequently asked questions
How many amendments has Pakistan approved to the Companies Act?
The federal cabinet has approved 170 amendments to the Companies Act, 2017, and the bill has been sent to Parliament.
How many business rules will be scrapped?
Proposals recommend removing an average of 70 to 75 per cent of unnecessary or duplicative regulations.
What is the Asaan Karobar Act?
It is a proposed law to simplify regulatory procedures, backed by an integrated digital portal where businesses can submit applications and deal with provincial and federal authorities through one platform.
