Govt Panel Proposes Major Amendments to Companies Act 2017

In a bid to align Pakistan’s corporate framework with international standards, a high-level subcommittee on regulatory reforms has proposed significant amendments to the Companies Act 2017. The recommendations, aimed at modernizing the country’s corporate laws, were discussed during a meeting chaired by Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. The SECP and BOI jointly presented a comprehensive package of reforms aimed at addressing outdated provisions and introducing greater flexibility in corporate governance. Among the key proposals are the removal of minimum and maximum limits on the number of members in private and public companies, the introduction of more flexible corporate forms, and the elimination of unnecessary restrictions that currently stifle innovation and growth. These changes, officials say, are crucial to creating a business-friendly environment and enhancing the ease of doing business in Pakistan. Haroon Akhtar Khan emphasized the urgency of implementing the reforms, warning that excessive regulations, procedural delays, and bureaucratic barriers continue to pose significant challenges for enterprises. “Several provisions in the existing law are outdated and hinder innovation in modern corporate structures,” he said, urging stakeholders to expedite the drafting process for the proposed amendments. The meeting marks a significant step forward in Pakistan’s efforts to modernize its corporate laws, with officials expressing optimism that the reforms will attract greater investment and enhance the country’s global competitiveness. The proposed changes are expected to be finalized and presented for approval in the coming months. The session, according to an official press release, was attended by key stakeholders, including Scott Jacobs, representatives from the Board of Investment (BOI), the Securities and Exchange Commission of Pakistan (SECP), and the State Bank of Pakistan (SBP).