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Express Tribune
2 days ago
- Business
- Express Tribune
Company law modernisation to save Rs250b
The government has estimated annual cost savings of around Rs250.54 billion ($895 million) through the modernisation of Companies Act and regulatory reforms. Of the total, savings of around Rs176.96 billion ($632.2 million) will come from modernising the law and Rs73.58 billion ($262.8 million) from regulatory changes. Sources said that it was informed in a recent meeting of the sub-committee on modernisation of Companies Act 2017, chaired by Special Assistant to Prime Minister on Industries and Production Haroon Akhtar Khan. During the meeting, Haroon Akhtar stressed the need for simplifying the registration process for unlisted companies, noting that delays, excessive regulation and the lack of ease of doing business had become serious challenges being faced by the business community. The sub-committee noted that stunted corporate growth was due to increasing regulatory burdens, which come with growth of a corporate entity. "There is excessive control over company activities and exclusion of innovative corporate financing options. A high level of complexity compounds such issues," it said. Pakistan has only 523 listed companies, which translates into two companies per million people. A comprehensive review of the Companies Act 2017 is required through benchmarking it with international standards. Global standards suggest that the Act should focus on regulating listed companies and higher-risk firms such as state-owned enterprises (SOEs). Corporate governance for unlisted companies should primarily be handled through corporate bylaws, shareholder agreements and contract law. The current one-size-fits-all approach is not suitable for the modern corporate environment. The Act imposes numerous thresholds, barriers and compliance costs that hinder the growth of unlisted businesses. It limits innovation in corporate forms and financing methods such as joint ventures, peer-to-peer lending, venture capital and crowdfunding. What modernisation will do It will promote faster growth of corporate entities by removing unnecessary restrictions, costs and risks. It will increase flexibility for organising and financing corporate entities to meet needs of a modern and dynamic economy. Apart from these, the Securities and Exchange Commission of Pakistan's (SECP) enforcement efforts for listed companies will be strengthened. Its focus on education regarding good governance will be reinforced. A review suggests that the 418-page Act can be substantially deregulated for unlisted companies to allow a smoother growth path from sole proprietors through limited liability companies (LLCs) and into the expansion phase using various financing forms. This shift will allow unlisted companies to grow faster and be more agile in responding to market opportunities by providing greater flexibility in governance. Special resolutions Special resolutions create thresholds that impose regulatory costs. There are mandatory provisions for unlisted companies. There is excessive reliance on special resolutions, which slows down routine decision-making. Routine decisions should be governed by corporate bylaws, shareholder agreements, contract law, or delegated to the board of directors. Pakistan has 23 special resolutions, compared to nine in Canada and six in Delaware. The Board of Investment (BoI) recommends eliminating seven, simplifying 10 to allow more flexibility for directors and retaining six that align with international practices for protecting minority shareholders. Rigid thresholds for forming and operating various types of corporate entities have resulted in unnecessary compliance costs. For example, a private company must have between two and 50 members. If the number exceeds 50, it must convert into a public company. BOI recommends eliminating arbitrary thresholds and the classification of single-member companies as a separate corporate form. It also suggests abolishing the minimum and maximum shareholder requirements for both private and public companies.
Business Recorder
19-07-2025
- Business
- Business Recorder
Business activities remain normal in twin cities
ISLAMABAD: The business activities remained normal in the twin cities of Islamabad and Rawalpindi, as businessmen did not observe a shutter down strike against the extraordinary powers of the Federal Board of Revenue (FBR) to make arrests under Finance Act 2025. The tax-related issues concern the implementation of the Finance Act 2025, including arrest powers under 37A of the Sales Tax Act, payment of Rs200,000 through cash, e-bility, and other enforcement provisions introduced under the Finance Act 2025. Shops and businesses remained open in all the key and local areas including main Murree Road, Saddar, Satellite Town and old city. Meanwhile, President Islamabad Chamber of Commerce and Industry (ICCI) Nasir Qureshi was of the view that the business community of the federal capital did not support the strike call. 'We have had discussion with Haroon Akhtar, SAPM on industries and he has assured to take up the matter with the PM - therefore, it's our responsibility to wait for a few days to see the outcome of his assurances,' he added. The 12-member committee has been constituted under the Chairmanship of Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. The committee also included Minister of State for Finance Bilal Azhar Kayani, PM's Coordinator on Trade Rana Ehsan Afzal Khan, FBR Chairman Rashid Mehmood Langrial, and representatives nominated by the business community and chambers of commerce. The committee will hold detailed deliberations over the next 30 days and present a consensus-based and workable solution to the prime minister and the federal cabinet. The business community openly shared their concerns and suggestions during the meeting, and the government expressed its commitment to take all stakeholders into confidence. It was agreed that every effort would be made to address traders' concerns related to transactions and to avoid causing any difficulties for the business community. Meanwhile, President All Pakistan Anjuman-e-Tajiran Ajmal Baloch said that the traders will hold protest demonstrations across the country on July 26 against new amendments in the finance bill. 'We are waiting for the reply from PM Office, and in the meantime our token protest will be held as per schedule, in the second phase we will go for token shutter down strikes,' Baloch said. He slammed the bureaucracy and said that they work with deception, and if the government failed to take back the new powers given to FBR officers, we will increase pressure. Copyright Business Recorder, 2025
Express Tribune
19-07-2025
- Business
- Express Tribune
Islamabad traders defy strike call
The shutter-down strike call given by some trader groups against the Federal Board of Revenue's (FBR)'s expanded powers had little to no impact in Islamabad, where business activities continued as usual on Saturday. The federal capital witnessed uninterrupted commercial activity, with residents engaged in routine shopping throughout the day. All major markets, shopping malls, commercial centres, and supermarkets — including Jinnah Super, G-9 Markaz, Blue Area, G-10, and I-8 — remained open, and stores operated normally. Neither the Islamabad Chamber of Commerce and Industry (ICCI) nor any major traders' alliance announced participation in the strike call given by Karachi and Lahore chambers against tax measures and arrest powers of the federal tax authority. According to the Chamber, recent negotiations with the government addressed the concerns of the business community, and assurances were given to resolve key issues. As a result, the decision was made to keep businesses open in Islamabad. In other parts of the country, however, factions of the trader community did call for protests and strikes, citing concerns over the FBR's increased powers, particularly the crackdown on non-filers and the broad authority granted to field officers to conduct raids. These measures, they argue, are fuelling uncertainty and distrust among business owners. Nevertheless, no strike-related closures or demonstrations were reported anywhere in Islamabad. On Friday, talks between the government and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) had concluded on a positive note, calling for the postponement of the nationwide shutter-down strike initially scheduled for Saturday. However, Karachi Chamber of Commerce and Industry (KCCI) maintained its call for a strike, citing unresolved concerns with the Finance Act 2025. A special committee was formed to address the grievances of traders regarding the controversial Finance Act. The committee, chaired by Prime Minister's Special Assistant on Industries, Haroon Akhtar, convened with representatives from various chambers of commerce to discuss the amendments in the act. The negotiations saw progress, with a consensus reached on several amendments. Among the most notable changes was the decision to remove Clause 9 of the act, which had been a key point of contention for traders. A proposal to amend Article 37A was also tabled, with the government agreeing to review it further. Despite these developments, KCCI President Jawed Bilwani expressed that while their demands were largely accepted, no written assurance was provided. In contrast, the FPCCI, led by Atif Ikram Sheikh, reached an agreement with the government to call off the nationwide strike. He thanked the authorities for their serious engagement and expressed hope that the prime minister would approve the proposed amendments. Effect in other cities Meanwhile, the strike led to widespread partial and complete market closures across Pakistan on Saturday. The strike divided traders into opposing camps. Major business centres in Karachi, Lahore, Hyderabad, Quetta, Peshawar, and several smaller cities observed shutdowns.
Express Tribune
19-07-2025
- Business
- Express Tribune
Cracks emergein traders' ranks over strike
FPCCI President Atif Ikram Sheikh addresses the media alongside presidents of other chambers of commerce in Islamabad after talks with Special Assistant to PM on Revenue Haroon Akhtar on July 18, 2025. PHOTO: ONLINE Listen to article Cracks have emerged within the traders' community over the planned strike on Saturday, with some groups calling it off after negotiations with the government, while others remain adamant about going ahead with it. Following talks with officials, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh announced that the nationwide shutter-down strike had been called off, claiming the government had accepted the business community's demands. He added that the Federal Board of Revenue (FBR) would not exercise its newly granted powers for the time being. "The trade bodies of the entire country are with us and the federation does not want to fight with anyone," said the FPCCI president, adding, "We want to resolve issues through negotiations." He said the traders had reservations about various amendments to the Finance Act while the government has assured to review Article 37A of the Finance Act. The FPCCI president said a four-member committee has been formed. However, he said a strike may be observed sporadically. In a twist, Karachi Chamber of Commerce and Industry (KCCI) took a strong stand and announced that the strike would not be called off until a written assurance is received from the authorities. Speaking at a press conference, KCCI President Javed Balwani said that a meeting was held on Friday with the government negotiation committee chaired by Haroon Akhtar Khan, in the presence of minister of state for finance and the FBR chief. "The government accepted most of our demands verbally, but we were not given a written assurance, so we have decided to go ahead with the strike," the KCCI president said. He said that all markets in Karachi, including Jodia Bazaar, Electronics Market, Fruit and Vegetable Market, and other business centers will remain closed on Saturday. The Karachi Mobile and Electronics Dealers Association, All Pakistan Restaurant Association, and the city's transport organizations have also backed the strike. He warned of expanding the scope of protest if their demands were not met by the next meeting. Initially, the strike will be observed for one day, then two days and then for the entire week if needed, the KCCI president warned "We work for 7 days, while the bureaucracy works for 5 days, even then, we are pushing against the wall," said Balwani, adding, "We are tax-paying traders, and unnecessary burden should not be put on us." Fruit and Vegetable Market President Abdul Qadeem Agha said, "We reject strict laws like 37A and 37B of the FBR, adding the tax on 0.2 million cash transactions is also unacceptable." Karachi Mobile and Electronics Dealers Association President Muhammad Minhaj Gulfam said that all electronics and mobile markets in Karachi will remain closed today. Meanwhile, Anjuman Tajiran President Mujahid Maqsood Butt also announced observing strike today. He said the business community will not be trapped by government tactics. He demanded that the government immediately withdraw all the black laws of the FBR, adding, "We will not retreat under any circumstances until the abolition of FBR's controversial powers. He announced that all wholesale markets in Lahore will remain closed on Saturday.
Express Tribune
18-07-2025
- Business
- Express Tribune
FPCCI, KCCI dispute over strike call for Saturday
Listen to article Talks between the government and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) concluded on a positive note on Friday, leading to the postponement of the nationwide shutter-down strike initially scheduled for Saturday. However, Karachi Chamber of Commerce and Industry (KCCI) has maintained its call for a strike, citing unresolved concerns with the Finance Act 2025. A special committee was formed to address the grievances of traders regarding the controversial Finance Act. The committee, chaired by Prime Minister's Special Assistant on Industries, Haroon Akhtar, convened with representatives from various chambers of commerce to discuss the amendments in the act. The negotiations saw progress, with a consensus reached on several amendments. Among the most notable changes was the decision to remove Clause 9 of the act, which had been a key point of contention for traders. A proposal to amend Article 37A was also tabled, with the government agreeing to review it further. Despite these developments, KCCI President Javed Bilwani expressed that while their demands were largely accepted, no written assurance was provided. "We have consulted with everyone. We are prepared to escalate the strike to one or two days a week, or even an entire week," he warned, maintaining the call for a strike in Karachi. Bilwani added that businesses across Karachi would remain closed the following day, as the KCCI continues to stand firm on the issue. He also noted that chambers in Lahore, Multan, Faisalabad, Sialkot, Peshawar, and other cities were also participating in the strike, citing widespread support from the business community. In contrast, the FPCCI, led by Atif Ikram Sheikh, has reached an agreement with the government to call off the nationwide strike. He thanked the authorities for their serious engagement and expressed hope that the prime minister would approve the proposed amendments. "We appreciate the seriousness shown by the authorities in hearing our concerns," he said, adding, "FPCCI does not seek confrontation; our preference is to resolve issues through dialogue." A four-member committee, including two officials from the Federal Board of Revenue (FBR), one from the FPCCI, and one from the affected industry sector, will be formed to handle any remaining issues and ensure a proper grievance redressal mechanism is in place. While FPCCI has agreed to halt the nationwide strike, Sheikh confirmed that isolated protests may still take place in some cities, but the full-scale shutdown has been averted. "The business community across Pakistan stands with us, and the government is committed to addressing our concerns through dialogue," he concluded.
