The government plans to introduce the second package of regulatory reforms by March this year to ensure ease of doing business.
While discussing a grant for the Digital Economy Enhancement Project (DEEP) component-II, the Economic Coordination Committee (ECC), in a recent meeting, inquired from the Board of Investment (BOI) about the measures taken to reform the regulatory regime from the perspective of ease of doing business.
It was informed that the first package of reforms had been prepared on a fast-track basis, which would be placed before the cabinet in due course. It was also told that the second package of reforms would be introduced by March 2025. The ECC emphasised that regulatory reforms should be implemented alongside other initiatives to enhance investors' confidence.
The BOI briefed the economic decision-making body that the government had launched the Digital Economy Enhancement Project to enhance digital access and infrastructure through improving digital governance and service delivery capabilities of public sector institutions at federal, provincial and local government levels. The BOI was spearheading DEEP component-II, which would support modernisation of the regulatory regime in Pakistan.
The end-result of component-II was the establishment of Pakistan Business Portal after completion of the mapping of regulations/laws, analysis of the relevance of mapped regulations, elimination and simplification of unnecessary laws and lastly, automation of all relevant business regulations and initiation of the e-payment system for all relevant charges.
DEEP had been declared effective on May 2, 2024 after approval by the World Bank board on March 22, 2024. Total cost of the project was $78 million. The cost of the BOI component (component-II) was $15 million (Rs3.5 billion). The outcome of component-II was the development of Pakistan Business Portal at a cost of $15 million for the first fiscal year of the project, ie, 2024-25.
A budget of Rs477 million had been allocated for DEEP component-II, which pertained to the BOI. At the time of approval of the project, a single account was allowed to be opened in the name of IT ministry.
However, to utilise funds effectively and to achieve the designated goal of each agency, three different revolving fund accounts were required to be opened for the IT ministry, NADRA and the BOI. A position paper was moved by the IT ministry in order to allow the opening of three different revolving accounts and sent to the Planning Commission and the Finance Division. Consequently, the Central Development Working Party (CDWP), in a meeting held on August 13, 2024, decided that a single revised authorisation would be issued, clearly specifying each executing agency with respect to the component-wise allocation.
The BOI briefed the forum that in pursuance of the CDWP directives, a revised authorisation for the project was issued on August 20, 2024 by the Ministry of Planning, Development and Special Initiatives and all executing agencies of DEEP were allowed to issue separate administrative approvals of the project concerning their component as per the approved cost breakdown. Following that, the Ministry of Information Technology and Telecommunication issued a revised administrative approval concerning DEEP, surrendering funds of NADRA and the BOI.
The BOI issued the revised administrative approval, as required for the opening of a separate revolving fund account and the release of funds.
In order to operationalise the revolving account and ensure the reallocation of funds surrendered by the IT ministry in favour of BOI, a technical supplementary grant was required to be approved by the ECC.
The ECC's approval was solicited for a grant of Rs477 million to be disbursed to the BOI in its separate account for DEEP component-II for the first year (2024-25).
The endorsement of the Finance Division and the Ministry of Planning for operationalisation of the revolving account was provided.
The ECC considered a summary submitted by the BOI titled "Approval of technical supplementary grant for Digital Economy Enhancement Project (DEEP) Component-II" and approved the proposal.
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