Govt approves major regulatory reform package

The Cabinet Committee on Regulatory Reforms (CCoRR), chaired by Federal Minister for Investment Qaiser Ahmed Sheikh, on Friday reviewed and approved the third quarterly Regulatory Reform Package prepared by the Board of Investment (BOI).

According to an official statement, the meeting marked another step in the government's effort to modernise Pakistan's regulatory framework under directives of the prime minister.

The package, developed by the BOI reform team, sets a forward-looking agenda to enhance transparency, streamline processes, and improve the ease of doing business. Key reform areas included the Regulatory Governance Strategy 2025-2030, aimed at establishing a modern legal system through creation of a Pakistan National Legal Registry (PLR).

The package also proposed simplification of bank account opening for businesses. Online onboarding for low-risk firms and the launch of an Asaan Business Bank Account (ABA) for SMEs were highlighted.

Another major component is the shift from fragmented district registries to a centralised National Business Registry managed by the Securities And Exchange Commission Of Pakistan (SECP). As per the statement, this will repeal the outdated Partnership Act, 1932. A new risk-based and technology-enabled framework for security clearance of foreign investors was also proposed, introducing statutory timelines and greater transparency.

The review of the Companies Act, 2017 formed another pillar of the package. Proposed updates focus on modernising requirements for listed and unlisted companies, removing outdated provisions and aligning with international best practices.

During the meeting, the committee reviewed all proposals in detail. The reforms were endorsed and regulators agreed on implementation. Directions were issued to federal ministries and departments to ensure time-bound execution.

The National Business Registry will eliminate duplication across district registries, allowing faster firm registration with nationwide recognition of legal status. The risk-based clearance system will give foreign investors predictable timelines, reducing uncertainty and enabling quicker project starts. Amendments to the Companies Act will cut compliance costs and improve governance by easing outdated requirements.

Federal minister for investment commended the BOI reform team and regulatory bodies for their role. He said the review reflected the government's commitment to regulatory modernisation and creating a transparent, efficient business environment.