Govt to Protect Industrialists from NAB, FIA, and FBR Interference

The government has decided to shield industrialists from direct interference by investigative agencies, such as the National Accountability Bureau (NAB), the Federal Investigation Agency (FIA), and the Federal Board of Revenue (FBR), under the upcoming industrial policy to boost exports. At the prime ministerial level, it has been agreed that any action against regulated entities will require prior approval from the Securities and Exchange Commission of Pakistan (SECP). Proposed amendments to Section 41B and Section 42A of the SECP Act 1947 will make it mandatory for law enforcement agencies to secure SECP approval before initiating inquiries, investigations, or proceedings against regulated entities. These include stock exchanges, central depositories, clearing houses, insurance companies, and non-banking financial companies (NBFCs). “No action or investigation shall be conducted without a reference from the SECP,” the draft amendment states, adding that foreign investors, including NICOP holders, will be explicitly protected from arbitrary interference. The Federal Board of Revenue (FBR) has committed to clearing stuck refunds worth billions of rupees, including sales tax, customs rebates, and income tax refunds. The policy also proposes simplifying regulatory procedures and limiting audits of exporters to once every three years. Additionally, the Ministry of Commerce, in coordination with the Finance Division, will announce a Drawback of Local Taxes and Levies (DLTL) scheme to provide relief to exporters. If fiscal space becomes available after the conclusion of the current IMF program, the government plans to address tax anomalies by applying minimum tax rates to exporters, similar to other businesses. Recognizing the need for a cohesive insolvency framework, the government has decided to amend the Corporate Rehabilitation Act, 2018 (CRA 2018) and the Corporate Restructuring Companies Act, 2016 (CRCA 2016). These revisions aim to broaden the scope of eligible debtors, protect companies, and facilitate effective restructuring. “The existing legal instruments are fragmented and costly, impeding effective restructuring,” the report stated. “The revised framework will provide a more comprehensive solution to insolvency challenges.”