Search Reforms By Sector

Before: Businesses were required to undergo a number of inspections for getting construction permits, which was causing delay and hassle for SMEs.

After: After reform, there are only 02 inspections for low-risk buildings: one before starting and other on completion.

Before: Businesses were facing difficulty getting drug licenses as pharmacies and drug stores had to obtain drug licenses from drug regulatory authorities which was time consuming.

After: The licensing process has been made time bound to ensure timely issuance of drug license i.e. within 45 days.

Before: Previously, there was no pre-set timeline for the registration of partnerships once the application had been filed. Partnerships had to wait for registration before commencing operations.

After: The Azad Jammu and Kashmir Partnership (Amendment) Act (1965) has prescribed the timelines. Now a partnership business can be registered with the registrar of firms in 07 days.

Before: There was no time-bound mechanism in place for the grant or refusal of approvals required for business operations by the AJK EPA.

After: Now, the approval process has been made time-bound and authority is required to communicate the same within the stipulated timeframe.

Before: The validity period of licenses granted to auto workshops was only one year, and owners had to renew them annually.

After: Now, the validity period of the auto workshop license has been extended to 03 years instead of 01 year.

Before: There was no efficient system for case and time management to help judges and lawyers track the progress of cases. As a result, adjournments were common, and businesses used to face delays in case resolution.

After: The Case Management System has enabled courts to keep track of the cases from filing to disposition in a coordinated and timely manner.

Before: There was no timeframe specified for approval of building plans which caused delays in building plans approvals.

After: With specific timelines now established for the issuance of NOCs/Permits, the process has become more efficient.

Before: Businesses were required to obtain an NOC from the EPA for building construction regardless of their risk category. This caused delays and increased costs for low-risk small businesses.

After: Now, the NOC requirement has been removed for low-risk buildings.

Before: The validity period of fisheries license under the Fisheries Rules, 1983 was 01 financial year (July-June).

After: Now, the validity period of fisheries license has been increased from 01 year to 03 years.

Before: The labour department charged a certain registration fee to register a business.

After: Now, businesses can register themselves with the concerned labour department without paying any fee. 

Before: Drug businesses had to renew their licenses after every two years

After: To save drug businesses from hectic renewal process, the validity of drug license has been enhanced from 2 to 5 years.

Before: There was no efficient system for case and time management for judges and lawyers to track progress of cases. Resultantly adjournements were common and businesses use to face delay in case resolution.

After: The Case Management System enabled courts to keep track of the cases from filing to disposition in a coordinated  and timely manner. 

Before: Businesses of tourism industry were unable to formally start business as committee needed under the law for promotion of tourism did not exist in Balochistan

After: A committee has been notified and will work to tap Balochistan’s tourism potential 

Before: There was no timeframe specified for approval of building plans which caused delays in building plans approvals.

After: Now, with specific timelines for issuance of NoCs/Permits in place the process has become efficient. 

Before: Businesses of the mining sector in Balochistan were facing difficulty as  if a mining lessee failed to pay for the royalty within time, his lease was cancelled.

After: Now after this reform, an option to pay overdue royalty in 4 equal quarterly installments has been provided in law.

Before: Businesses were required to undergo a number of inspections for getting construction permits which was causing delay and hassle for SMEs.

After: After reform there are only 02 Inspections for low risk buildings; one before starting and other on completion. 

Before: Businesses were bound to get an NOC from EPA for construction of buildings regardless of their risk category. This was causing delay and adding cost to low risk small businesses. 

After: Now, the NOC requirement has been removed for low risk buildings. 

Before: Firms were using the traditional manual system for registration with the Registrar of Firms, which was time consuming and adding cost. t

After: Now firms can register themselves with the Registrar of Firms with less time and cost through the newly developed online system. 

Before: Product registrations with food authorities was manual, which was very cumbersome process involving extra time and cost. 

After: Now online facility has been launched for registration of food products

Before: Registering property was a manual and hectic process. There was no provision in Law to create online repository and authorize electronic verification.

After: The law has been amended and electronic verification of credentials is possible now.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons and grading of whitewash. Inspectors used to penalize businesses for small violations.

After: Businesses have been permitted to make hygiene related measures as per best practices. Now inspectors cannot challan businesses on lesser no. of spittoons or specific grade of whitewash.

Before: Drug Sale license were issued by using traditional manual system which was burdensome because of increased cost and compliance hassle. 

After: Drug Sale Licenses can be obtained by applying on newly developed online portal;(http://www.dghs.gob.pk/medicalapp/index).

Before: Factories Act prescribed minute details like grading of whitewash and ensuring all surfaces are white washed. Inspectors used to penalize businesses for even minor violations like whitewashing of factory premises.

After: Now the businesses have been permitted not to compulsorily white wash the surface if it is made of the material which cannot be painted, varnished or whitewashed including marble tiles or similar material.

Before: Labour departments used to inspect all businesses on frequent basis even inspected those businesses where no risk of safety and security is involved.

After: Now for compliant and low risk businesses, no. of inspections has been decreased. Un-necessary inspections have been eliminated.

Before: For new businesses, registration process was time consuming and frustrating as there was no time frame specified.

After: The factory registration process has been made time bound and the registration process has become efficient.

Before: There was no Alternative Dispute Resolution mechanism in place, therefore, courts were the only forum to resolve the business-related disputes.

After: Balochistan Government has approval “The Balochistan Alternative Dispute Resolution Bill, 021” to enable establishment of alternate dispute resolution system in Balochistan.

Before: Businesses suffer as commercial Cases were taking much time for resolving a business dispute, because of a huge litigation burden, causing delay and resulting in loss of confidence by businesses on the system.

After: Now, legislative changes enabling establishment of Commercial Courts have been made to fast track dispute resolution

Before: Government departments used to specify furniture and fixture made of Sheesham / Keekar wood in their procurement tenders.

After: The requirement for furniture made of Sheesham/ Keekar wood was eliminated. Now, furniture businesses can bid with alternatives of Sheesham / Keekar wood.

Before: The food processing businesses operating in one jurisdiction had to comply varying compliance requirements in order to operate in different jurisdictions across Pakistan.

After: Now, Balochistan Food Authority has adopted the harmonized food standards as notified by PSQCA and a food processing business operating in Balochistan now can expand the business operations anywhere in Pakistan without varying compliance requirements.

Before: Product registrations with food authorities was manual, which was very cumbersome process involving extra time and cost.

After: Now online facility has been launched for registration of food products

Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.

After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce.

Before: The validity period of license granted to auto workshops was just 01 year and the owners have to get it renewed every year.

After: Now, the validity period of the auto workshop license has been extended to 03 years instead of 01 year.

Before: Earlier the registration of firms used to be done in silos. In order to get its registration done a firms has to apply manually with each department by submitting application on the prescribed form.

After: With the online system in place the firms now can simultaneously register themselves with FBR, Balochistan Employees Social Security Institution, Industries and Commerce Department, Labour and Manpower Department, and Excise, Taxation & Anti-Narcotics Department.

Before: Earlier there was no pre-set timelines for registrations of partnerships once the application has been filed. The registering partnerships had to wait for registration before subsequent start of operations.

After: The Partnership Balochistan (Amendment) Act, 2022 has prescribed the timelines. Now a partnership business can be registered with the registrar of firms within 48 hours.

Before: : Companies were discouraged to bring money to Pakistan

After: IT companies are encouraged to bring exports and investments to Pakistan

Before: : For international companies, attestation from the foreign Pakistan embassy is required which takes months.

After: The process has been simplified and automated for a seamless first experience for foreign investors and shareholders.

Before: It was compulsory to mix red dye in Palm Stearin before importing, which increased the cost and also delayed shipments.

After: After elimination of this requirement, Palm Stearin can now be imported more conveniently, without incurring extra cost.

Before: Manufacturers of food products had to get certified against multiple standards of different provinces and the federal government.

After: One single National standard for each product is now applicable in all jurisdictions.

Before: PSQCA used to visit the factory multiple times before granting the license, which took several weeks.

After: The entire inspection/ verification process is completed in one day now.

Before: PSQCA regualtions allowed Max timeperiod of 45 days to issue CM License Certificate which was a lengthy process.

After: The maximum time period allowed for issuance of CM license has been reduced to maximum of 28 days.

Before: The manufacturers of PPEs were following a pharmaceutical regime which required them to hire pharmacists and install HVAC systems etc., causing huge financial burden.

After: Under the new Regime, all such unnecessary requirements have been removed for PPE manufacturers.

Before: To avail the facility of net-metering, consumers were required to first obtain a normal 3-phase meter before getting a bi-directional (green) meter, causing delay and extra cost.

After: Now, direct installation of bi-directional meter is allowed which saves time and Rs. 15,000 for each consumer.

Before: Each year PSQCA used to conduct four inspections to test products, which was costly and a burden on businesses.

After: Now, there would be only two annual inspections resulting in reduced testing and costs.

Before: License application along with documents had to be physically submitted in DRAP’s Islamabad Office, causing delay and extra cost to business.

After: The Registration process has been simplified and automated. Applicants can now submit applications online from anywhere in Pakistan.

Before: AEDB had fixed warranty periods for different equipment sometimes over and above the warranty period given by OEMs, causing additional cost to businesses.

After: Now the warranty period would be the same as given by OEMs which will remove hardship to businesses.

Before: Earlier, small solar businesses could install solar systems of a limited capacity as AEDB had strict criteria for certification.

After: With revised criteria, now small and medium size businesses may install systems with higher capacities which earlier were out of their scope ( C-1 “above 500 kw”; C-2 “upto 500 kw”; and C-3 upto 250 kw”).

Before: Every year, such companies needed to apply for renewal of their license, causing hassle and adding additional cost

After: Now the license will remain valid for 03 years

Before: New companies needed to obtain separate incorporation certificates from several agencies, causing hassle and adding to the cost and time.

After: Joint incorporation certificate by 7 agencies is issued electronically in one day, with QR code for verification.

Before: Businesses were required to make tax payments manually, involving cumbersome processes. Besides, in the World Bank’s Doing Business Report, the numbers of payments of Corporate Income Tax were recorded 05 and 12 for Sales Tax, as a result Pakistan’s ranking was 173/190.

After: Payments are being made online, which is quite simple and fast process, saving a lot of time and reducing calculation errors.

Before: It was budensome for businesses to pay contributions manually each month

After: After introduction of Online oayment facility by EOBI, Businesses can conveniently pay their contributions online

Before: : There was no integration of Animal Quarantine Dep, Plant Protection Department and Seed Certification Departments with the WeBOC system, resulting in more time and cost for documentary and border compliance in trade.

After: Integration with WeBOC Reduced a lot of hassle, time and cost for getting clearance from these departments for clearance.

Before: Only incorporated companies were getting loans against immovable assets. Besides, only current assets could be kept as collateral for loans. This situation was difficult for businesses as it restricted the access to credit

After: Now, businesses can get loans against their moveable assets as well and unincorporated entities are also eligible for loans. Besides, future assets can also be kept as collateral for getting loans. Such practices are considered business friendly and improvement is expected in the ranking in Getting Credit indicator in Doing Business report, 2021.

Before:Businesses required clearance of materials, accessories, components etc., for use in production of exportable goods. All importers (including reliable ones) required to get each consignment examined which was causing delay & additional expense to the businesses.

After: Pakistan Customs/FBR has introduced Risk Management System under WeBOC to facilitate the clearance for import of materials, accessories, components etc., for production in exportable goods. Now, a huge portion of 50% export clearances are being granted under Green Channel.

Before: Imported food products/ingredients (Peanut Grit, Raisins, Dehydrated Vegetables, Egg Powder etc.) consignments were stopped by the Department of Plant Protection for sample collection, testing and reporting every time, causing delay & additional expenses.

After: Introduction of a mechanism of Temporary Release Certificate (TRC) by PSQCA has minimized time involved in clearance of imports of food products, samples and edible items and it has saved importers from damages.

Before: To participate in tea auctions abroad, importers received (non-commercial quantity) tea samples. Department of Plant Protection (DPP) regulations require Release Order for Customs Clearance causing considerable delays. Sometimes, samples were cleared after auction had already been completed, rendering the entire exercise futile.

After: Inspection regime for import of samples of edible items has been shifted to Risk Management System. Now less than 1% of shipments are stopped for inspection. Risk based filters like source/origin, importer’s and exporter’s profile and product have been developed and deployed. Only two interceptions have been reported in the last 6 months, and the number of inspections will be increased or decreased depending upon the frequency of violations.

Before: Imported food products ingredients (skimmed milk powder, whey powder, coconut oil etc.) consignments were stopped for drawing samples, testing and reporting every time before issuance of clearance by the Animal Quarantine Department. This process was causing delays & additional expenses for importers.

After: Inspection regime for import of samples of edible items has been shifted to Risk Management System. Now less than 1% of shipments are stopped for inspection. Risk based filters like source/origin, importers and exporter’s profile and product have been developed and deployed.

Before: Exporters of software were not allowed to utilize their own export earnings in Foreign Currency accounts exclusively for payment of expenses incurred by employees travelling abroad to provide business related services. The existing rules only allowed the payment of commission/discount, promotional publicity, import of hardware/software, and foreign consultant’s fee etc.

After: SBP broadened the use of funds by I.T exporters and have allowed to retain a certain portion of their exports proceeds in their special foreign currency accounts and use it for branch office, branding, marketing and traveling expenses.

Before: Process for filing of monthly and annual reporting of EE statements for annual export ticket approval was manual which caused delays and huge expenses for the businesses.

After: Automated filing of monthly and annual reporting of EE statements for annual export ticket approval has reduced the turnover time from 21 to 07 days.

Before: SBP had imposed margin restriction on import of items listed under FE Act-BPRD Circular No. 2 of 2017 and 5 of 2018.

After: SBP has waived the condition of 100 percent cash margin requirement on imports made against the restrictions imposed in 2017-18 for 106 items in 2020 and for 11 items in 2021.

Before: There was no time limit prescribed for processing of Rebate claims selected by Risk Management System for compliance check.

After: FBR has prescribed a time limit of 07 working days in law for clearance of selected rebate claims for compliance within.

Before: TFor different categories of electric connections, change of name, load and other particulars used to take a long time since there was no timeline present to complete the process.

After: Efficient timelines for all categories of electric connections have been added in the Consumer Service Manual of NEPRA to facilitate consumers.

Before: DRAP restricted utilization of approved premises for production of other relevant products due to which businesses couldn’t utilize extra space in manufacturing of allied products.

After: Now DRAP has allowed use of approved premises for additional relevant processes such as manufacturing medical devices

Before: There were restrictive arrangements for cloud outsourcing arrangement for banking sector.

After: Enhanced banking relationships with digital banking options to cater to the requirements of IT & ITeS and other sectors. 

Before: Procedure for payment to foreign vendors against digital services obtained was lengthy and involved approval from SBP for each transaction above USD 100,000.

After: Now State Bank has allowed payment up to USD 400,000 to 62 white listed companies without obtaining approval from State Bank. 

Before: Foreign Exchange (FE) Manual had prescribed approval of SBP or ECC for each investment made abroad which discouraged businesses from investing in foreign countries.

After: Now the residents of Pakistan including firms and companies are allowed to make equity-based investment in entities abroad on repatriable basis, and decision has been delegated to banks for different categories. 

Before: Foreign subsidiaries were unable to secure direct financing from banks to meet their working capital.

After: The Authorized Dealer (Banks) have been allowed to open standby letter of credit to facilitate the offshore entity of a Pakistani firm/company for raising funds from offshore jurisdiction. 

Before: Import of material in small quantities was subjected to stringent regulations under the Foreign Exchange Manual.

After: Industry friendly policies have been introduced to allow small quantity import of material on an open account basis.

Before: Previously, only frozen meat products were included in the Export Finance Scheme and short term financing facility was not allowed for fresh meat products.

After: Now, fresh meat products have also been added in the Export Finance Scheme along with frozen food products.

Before: Long Term Financing Facility (LTFF)/ Islamic Long Term Financing Facility (LTFF) was restricted to few sectors and limit was up to Rs. 2,500 million which was regarded as insufficient.

After: The scope of LTFF/ILTFF has been extended to all sectors and maximum financing limit has been enhanced from Rs. 2,500 million to Rs. 5,000 million.

Before: There were no special tax exemptions for Information Technology and Information Technology enabled Services (IT & ITeS) sector to enhance its exports.

After: Now, custom duties have been exempted to facilitate the exports of services in the IT & ITeS sector.

Before: All businesses having at least 5 employees were required to register with the Employees’ Old-Age Benefit Institution (EOBI).

After: Employees’ Old-Age Benefit Institution (EOBI) has exempted micro/ small organizations from mandatory registration. 

Before: PSQCA has mandate to ensure observance of standards of mandatory products in Pakistan. Businesses had to visit PSQCA office to register their products.

After: A dedicated web portal (http://pas.psqca.com.pk/e_services/ca_online.aspx) for Licensing has been introduced by PSQCA. Now applications for licensing and inspections can be filed from anywhere online.

Before: All Consumers intending to connect with national grid through net-metering had to obtain generation license from NEPRA.

After: Now the small consumers and SMEs can avail facility of net-metering and connect their solar or wind power generation up to 25 kilowatt without requiring to obtain a license from NEPRA.

Before: Exporters need to register as users in the WeBOC system of FBR which required more than twenty documents and also required exporters to physically visit concerned offices for physical verification.

After: Now registration of exporters is done through an integrated online system of Pakistan Single Window (PSW) with data exchange with other concerned departments as well as biometric through NADRA. This has reduced a lot of hassle and cost on the part of exporters.

Before: For reappointment or appointment of a foreign director in another company, fresh NOC from MoI was required which took a lot of time.

After: The requirement of fresh NOC from MoI for incumbent Foreign Director of a company has been eliminated.

Before: The manufacturers of surgical items could not export goods below the price fixed by the Ministry of Commerce even if it was financially feasible.

After: This restriction has been eliminated and exporters of surgical instruments can sell goods in accordance with market conditions.

Before: The bank account opening process involved manual verification from Security and Exchange Commission of Pakistan (SECP) which used to take 30-40 days. This procedural bottleneck delayed the bank account opening for the corporate consumers and legal persons such as companies registered with SECP.

After: Now, on the filling of request for Corporate Account opening, any commercial bank can obtain the requisite verification from SECP through SECP’s Virtual Portal which is integration with all the commercial banks.

Before: Earlier the outbound foreign exchange payments were heavily regulated and involved cumbersome paperwork which caused unwarranted delay and frustration among the newly founded businesses.

After: Now these businesses can make outbound forex payments on the basis of their National Tax Number, Sale Tax certificates or other tax registration evidence with FBR.

Before: As per the Companies Act, a resolution shall not be deemed to have been passed, unless the resolution has been circulated, together with the necessary papers, if any, to all the directors

After: Now, a resolution can be passed by a majority of the directors.

Before: The registration process of the Low Risk Medical Devices was cumbersome and registration process for all the medical devices was same.

After: With the risk categories of medical devices in place the registration process for Low Risk Medical devices has been simplified.

Before: The businesses were experiencing unauthorized inspections by the inspectors of EOBI, which often lead to corrupt practices and misuse of authority.

After: With the feedback mechanism in place now the businesses can register their feedback about the conduct of the inspections.

Before: Medical devices manufacturing units were required to hire the services of a pharmacist.

After: Now, requirement for hiring the services of pharmacist is no more required. Factories manufacturing medical devices now can start manufacturing without any such burden.

Before: Testing of import samples from the same consignment used to be carried out by PSQCA and OGRA which was a duplication and added additional testing costs as importer had to pay for each testing by these departments.

After: Now, instead of multiple testing, a single test of lubricant oil sample will be carried out by Pakistan Customs from an accredited laboratory and its report will subsequently be shared with PSQCA and OGRA.

Before: Importers and Exporters had to obtain Form “E” &”I” for imports and exports from commercial banks for each consignment.

After: After the integration of the commercial banks with Pakistan Single Window (PSW) the requirement of form “E” & “I” has been eliminated altogether.

Before: Earlier, both Provincial Environmental Protection Authorities and Ministry of Climate Change-MoCC used to inspect the premises of importer to allow import of the plastic waste.

After: Ministry of Climate Change has abandoned the joint site inspection visit and now only provincial EPA will be the competent authority to undertake the site inspection and recommend the import of the plastic waste which will be allowed by MoCC.

Before: DRAP extended the Good Manufacturing Practices (GMP) certification only for one year which required renewal on expiry and resulting compliance.

After: To avoid recurring compliance and associated hassle the GMP certification has been extended to a period of 03 years instead of 01 year.

Before: The customers who made a purchase exceeding PKR 50,000 were required to provide the copy of Computerized National Identity Card (CNIC) to the vendor, even if they made payment via credit/debit card.

After: Under the Finance (Supplementary) Act, 2022 the requirement of providing CNIC was abolished in case where the payment has been made by using a debit or credit card.

Before: To be able to import medical devices it was mandatory for businesses/importers to obtain a Drug Sale License, whereas they weren’t not manufacturing nor selling any drugs/medicines.

After: The requirement of obtaining Drug Sale License has been abolished for importers of medical devices

Before: Only registered importers were allowed to import medical devices whereas their authorized agents/ distributors were not able to import the already registered medical devices.

After: In line with the international best practices now authorized distributors of registered importers can import medical devices from international manufacturers of Medical Devices.

Before: In the medical devices rules it was permitted that only a sole representative can import from original equipment manufacturers.

After: Through an amendment the condition of sole representative has been done away with. Now multiple importers of similar brand are allowed to import the medical devices from same OEM

Before: Businesses which have been winded up due to any reason were used to submit an application for de-registration and then had to wait for a long period of time; meanwhile the case gets audited.

After: A timeline has been set by which the concerned department has to complete the tasks, on the expiry of the 90 days, the business is deemed to be de-registered.

Before: Earlier only the firms registered with Registrar of firms were issued the National Tax Number (NTN) online.

After: Now, to facilitate unregistered firms (partnerships/ Associations of Persons) and to bring them in the tax net the NTN is being issued online prior to registration with Registrar of firms.

Before: The required qualification for hiring a technical person was to be either a “Bio Medical Engineer” or “Biotechnologist” or “Microbiologist”. These qualifications were not relevant to this sector, instead were required at the manufacturing side.

After: A technical employee with relevant experience is now eligible and can be hired for supervision or as in-charge of quality control for medical devices industry.

Before: There was a customary practice by the government departments to require furniture and fixture made of Sheesham/ Keekar wood in their procurement documents.

After: The requirement for furniture made of Sheesham/ Keekar wood was eliminated. Now, furniture businesses can also bid with alternatives materials for Sheesham/Keekar wood.

Before: Healthcare devices used to be registered after going through numerous checks and a detailed scrutiny which were based on large number of documents. At the time of renewal similar exercise was repeated.

After: Registration and renewal is made easier by introducing simpler forms and removing various attachments which were required earlier.

Before: Products which had already been cleared by international Stringent Regulatory Authorities as per certified standards had to undergo registration and quality check while entering Pakistan – this had requirement added-up to cost and time for businesses.

After: PSQCA has allowed the entrance/import of products which had already been approved by international SRA’s according to stringent standards.

Before: For a foreign employee working in Pakistan, obtaining a work visa was a very cumbersome procedure which involved duplications of seeking similar information and redundant steps. Individuals had to apply separately with Ministry of Interior and Board of Investment, and also make separate payments.

After: To eliminate the duplication, the existing framework for issuance of work visa has been integrated with Pakistan Online Visa System (POVS). Now, an applicant can simply apply online for work visa and make online fee payment.

Before: Business incorporation and subsequent operationalization involved separate registrations with regulators of Information Technology and SECP.

After: Now the business registrations of Information Technology sector have been integrated at the Securities and Exchange Commission of Pakistan’s eSerives portal (https://eservices.secp.gov.pk/). The businesses now can avail simultaneous registration STZA at the SECP’s eServices portal.

Before: Business incorporation and subsequent operationalization involved separate registrations with regulators of Information Technology and SECP.

After: Now the business registrations of Information Technology sector have been integrated at the Securities and Exchange Commission of Pakistan’s eSerives portal (https://eservices.secp.gov.pk/). The businesses now can avail simultaneous registration PSEB at the SECP’s eServices portal.

Before: Business incorporation and subsequent operationalization involved separate registrations with Solar Energy sector such as registration with PEC and SECP.

After: Now the business registrations Solar Energy sector have been integrated at the Securities and Exchange Commission of Pakistan’s eSerives portal (https://eservices.secp.gov.pk/). The businesses operating in both of Solar Energy sector can avail simultaneous registration with PEC at the SECP’s eServices portal.

Before: The need to produce public documents abroad has increased alongside cross-border mobility and interactions at the global level. In many cases, to ensure the authenticity of these public documents, they are subject to the costly and time-consuming process of legalisation, often requiring multiple steps and involving multiple authorities.

After: The Apostille Convention replaces the traditional and cumbersome legalisation process with a single formality; the issuance of a certificate called an Apostille. An Apostille, issued by the State of origin, authenticates the origin of a public document so that it can be presented abroad in another Contracting Party. This simplified framework facilitates the circulation of public documents internationally for individuals, families, and commercial operators.

Before: Pharmaceutical manufacturing facilities/factories were required to have either their own testing facilities for verification of products standard or they were required to obtain prior permission from DRAP to get these tests done from private laboratories.

After: Now for standard testing, DRAP has notified accredited laboratories from which the pharmaceutical businesses can simply get their tests done without going through the prior approval mechanism of DRAP.

Before: Earlier, the traders had to submit Twenty-two (22) documents by visiting the office, physically. This usually took up to 15-20 days for the process to be completed.

After: For PSW subscription now neither submission of hard copies of the documents nor any office visit is required. The process has been digitalized and is auto validated through real time integration which takes up to 15 minutes now.

Before: For the security protection and facilitation a high level of compliance system was missing.

After: AEO program is World Customs Organizations (WCO) flagship program this is administered by Customs authority to provide security and facilitation benefits to businesses that demonstrate a high level of compliance with customs regulations and trade laws.

Before: Earlier, the Companies Act, 2017 had complex regulatory requirements and was not up to date with the new business terms, such as the definition for “Startup company” was not defined. Companies were required to report subscription money to the registrar on a specified form within 45 days from the date of incorporation.

After: The Companies Act 2017 was updated with latest business terms and many redundant requirements were eliminated, such as the requirement to mention fathers/husbands name for a woman to register their businesses; similarly, requirements to file subscription money was also done away with.

Before: Earlier, companies were required to seek Commission’s approval while issuing shares with different rights (under section 6(iv) of the regulations).

After: Now, requirement for seeking commission’s approval for issuance of shares with different rights has been abolished (under section 6(iv) of the regulations).

Before: Several redundant reforms with respect to the charitable and not for profit organizations required and the amendments in the association with charitable and not for profit objects regulations, 2018 were to be made to facilitate the businesses.

After: Consequently, effective measures were taken to improve the ease of doing business for the specific classification and amendments in the subject regulations were made.

Before: The Cable TV operators, once issued with their licenses, were not allowed to downgrade their category of license. High category required higher fees and annual renewal charges.

After: Now, all Cable TV operators are allowed to downgrade their license category once in period of their license issuance.

Before: Distribution service operators were previously not allowed to relay In-House CD Channels as it was not notified in the official gazette.

After: Now, In-House channel permission is notified in the official gazette of Pakistan, with subject to fee and 5% of GAAR.

Before: No NOC was required for the relaying of advertisements regarding Housing Schemes etc. through distribution service stations.

After: Now, NOC from the concerned department and permission from PEMRA is required for relaying advertisements regarding housing schemes, etc. through Distribution Service Operators.

Before: Cheques for payments of salary, pension, GPF and vendor payments used to be submitted to banks. This used to take 1-2 days before being credited to the accounts of beneficiaries.

After: Micro Payment Gateway (MPG) is the process of making direct credit of payments into the beneficiaries’ bank account. The process has been implemented for payroll of this office and vendor payments partially.

Before: The landing rights permission regulations regulated the landing rights and educational category foreign channels were made to comply the same regulations.

After: Through the amendment in PEMRA LRP Regulations-2016 as amended upto 2021, the upfront tariff/ license fee for the landing rights permission of educational category foreign channels has been reduced to Zero for a period of 02 years.

Before: It was felt that streamlining the licensing process for the educational and specialized subject (Non-commercial satellite TV licensees) is the need of the hour to promote education through broadcasting means and also to increase the uptake of the distance learning.

After: Through the amendment, an effort has been made to streamline the licensing process for the educational and specialized subject (Non-commercial satellite TV licensees).

Before: There were restriction on the change of category/ genre of the satellite TV channel from other category such as “regional Language” to “entertainment”, “Sports”, “News and current affairs”.

After: Through the amendment, the earlier restriction on the change of category/ genre of the satellite TV channel from other category such as “regional Language” to “entertainment”, “Sports”, “News and current affairs” has been removed.

Before: : Businesses faced difficulties in importing non-biological feed additives, feed preparations, and food premixes due to unnecessary requirements for sanitary and phytosanitary certificates from exporting countries, even though such certificates are not issued for non-biological samples.

After: The requirement to produce SPS certificates has been removed for non-biological products.

Before: : Analysis reports from local official lab were required despite international products having certificate of analysis from exporting countries.

After: Sampling for analysis will be done on random basis considering risk based inspection inspite of every product testing.

Before: : Around 300 Food and Feed standard documents were available on purchase only, costing heavy sum of money, with each standard costing around 1000-4000Rs.

After: All updated food standards are freely accessible to business operators through PSQCA website.

Before: Registration of industrial units in Gilgit Baltistan used to be a time taking process. Without any specific timeline the process could take more than 20 days for some industries.

After: The time taken for registration of industrial units has been reduced to 7 days within which registration will be issued.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons. Inspectors used to penalize businesses for small violations.

After: Businesses have been permitted to make hygiene related measures as per best practices. Now, the requirement to place spittoons has been abolished.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons and using specific grade chalk for for whitewash. Inspectors used to penalize businesses for small violations.

After: Businesses have been permitted to make hygiene related measures as per best practices. Now, the requirements of a specific grade of whitewash have been abolished.

Before: Businesses faced difficulties obtaining drug licenses, as pharmacies and drug stores were required to get them from drug regulatory authorities. It was a time-consuming process.

After: The licensing process has been made time-bound to ensure timely issuance of drug license i.e. within 45 days.

Before: The labour department charged a certain registration fee to register a business.

After: Now, businesses can register themselves with the concerned labour department without paying any fee.

Before: Mining businesses in Gilgit-Baltistan faced challenges due to a policy that canceled leases if royalty payments were not made on time.

After: Following the reform, the law now allows overdue royalty payments to be made in equal quarterly installments.

Before: Due to no prescription from Government, businesses in the mineral sector were charged with excessive surface rents.

After: A fair criteria for charging surface rent has been notified to safeguard businesses in the minerals sector.

Before: Previously, the validity period of licenses granted to auto workshops was only one year, requiring owners to renew them annually.

After: The validity period of auto workshop licenses has now been extended from one year to three years, providing greater convenience to businesses.

Before: Businesses faced uncertainty because partnership registrations were carried out without a defined timeframe, often taking longer than necessary.

After: The partnership registration process has been made time bound, now the registration is required to be done within the stipulated time.

Before: Businesses were concerned about being caught in legal disputes because there was no time limit for resolving suits, and an unlimited number of adjournments were allowed. The resolution of commercial cases often took a long time, sometimes exceeding three years.

After: This reform has improved the confidence of businesses operating in the country as more than 50% of commercial cases are disposed of within the time limit of 180 days and within 2 adjournments. It will also improve Pakistan’s ranking in this indicator in the Doing Business report.

Before: There was no timeframe specified for approval of building plans which caused delays for the businesses.

After: Now, with specific timelines for issuance of NOCs/Permits in place, the process has become more efficient.

Before: For the transfer of motor vehicles both transferor and transferee used to visit excise office along with the hard copy of the transfer deed.

After: Now, a biometric verification process has been introduced. The transferor can give the bio-metric verification receipt using the NADRA system and excise department can verify the authenticity of it using the shared database before transferring the ownership of the vehicles.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons and grading of whitewash. Inspectors used to penalize businesses for small violations.

After: Businesses are now permitted to implement hygiene measures according to best practices. Inspectors can no longer issue challans for having fewer spittoons or for the specific grade of whitewash used.

Before: Factories Act prescribed minute details like grading of whitewash and ensuring all surfaces are white washed. Inspectors used to penalize businesses for even minor violations like whitewashing of factory premises.

After: Businesses are now permitted to forgo compulsory whitewashing of surfaces made from materials that cannot be painted, varnished, or whitewashed, such as marble tiles or similar materials.

Before: Section 05 of Factories Act authorized government to apply the provisions of Factories Act to smaller establishments with five or more employees.

After: Through an amendment, section 05 of Factories Act has been amended, thus smaller establishments can no longer be regulated under the Factories Act.

Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.

After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce.

Before: For new businesses, the registration process was frustrating as there was no time frame for the registration of the factories.

After: The factory registration process has been made timebound and efficient.

Before: The food processing businesses operating in one jurisdiction had to comply with varying compliance requirements in order to operate in different jurisdictions across Pakistan.

After: The Islamabad Food Authority has now adopted the harmonized food standards notified by PSQCA. As a result, food processing businesses operating in ICT can expand their operations anywhere in Pakistan without facing varying compliance requirements.

Before: Businesses were required to undergo a number of inspections for getting construction permits which was causing delay and hassle for SMEs.

After: After reform there are only 02 Inspections for low risk buildings; one before starting and other on completion. 

Before: Businesses were bound to get an NOC from EPA for construction of buildings regardless of their risk category. This was causing delay and adding cost to low risk small businesses. 

After: Now, the NOC requirement has been removed for low risk buildings. 

Before: Due to no prescription from Govt., Businesses in the mineral sector were charged with excessive surface rents .

After: A fair criteria for charging surface rent has been notified to safeguard businesses in the minerals sector.

Before: No timelines were provided in the by-laws for approval of maps/ layout plans, resulting in uncertainty and causing delays.

After: Now, the approval of map/ layouts is time bound and businesses can plan for construction with certainty

Before: Labour departments used to inspect all businesses on frequent basis and businesses particularly those where no risk of safety and security is involved, often complain about unnecessary and frequent inspections 

After: Now for compliant and low risk businesses, no. of inspections has been decreased. Un-necessary inspections are eliminated.

Before: All 120 trades including small ones had to obtain Trade License and and pay pay License fee and annual inspection fees .

After: All trades have been exempted from Trade License Fee & Inspections under Khyber Pakhtunkhwa Local Government Act, 2013

Before: The labour department charged a certain registration fee to register a business.

After: Now, businesses can register themselves with the concerned labour department without paying any fee. 

Before: Firms were using the traditional manual system for registration with the Registrar of Firms, which was time consuming and adding cost.

After: Now firms can register themselves with the Registrar of Firms with less time and cost through the newly developed online system. 

Before: Product registrations with food authorities was manual, which was very cumbersome process involving extra time and cost. 

After: Now online facility has been launched for registration of food products

Before: Registering property was a manual and hectic process. There was no provision in Law to create online repository and authorize electronic verification

After: The law has been amended and electronic verification of credentials is possible now.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons and grading of whitewash. Inspectors used to penalize businesses for small violations.

After: Businesses have been permitted to make hygiene related measures as per best practices. Now inspectors cannot challan businesses on lesser no. of spittoons or specific grade of whitewash.

Before: For new businesses, the registration process was frustrating as there was no time frame for the registration of the factories.

After: The factory registration process has been made timebound and the registration process has become efficient.

Before: Factories Act prescribed minute details like grading of whitewash and ensuring all surfaces are white washed. Inspectors used to penalize businesses for even minor violations concerning whitewashing of factory premises.

After: Now the businesses have been permitted not to compulsorily white wash the surface if it is made of the material which cannot be painted, varnished or whitewashed including marble tiles or similar material.

Before: Section 05 of Factories Act authorized government to apply the provisions of Factories Act to smaller establishments with five or more employees.

After: Through an amendment, section 05 of factories has been deleted, thus smaller establishments can no more be regulated under the Factories Act.

Before: The validity period of license granted to auto workshops was just 01 year and the owners have to get it renewed every year.

After: Now, the validity period of the auto workshop license has been extended to 03 years instead of 01 year bringing ease to those businesses.

Before: The businesses were experiencing unauthorized inspections by the inspectors of various departments such as ESSI, food department, industries department, and labour department, which often lead to corrupt practices and misuse of authority.

After: With the feedback mechanism in place now the businesses can register their feedback about the conduct of the inspections.

Before: There was no efficient system of case and time management for judges and lawyers to track progress of cases. Resultantly cases were often adjourned and businesses faced delays in resolution.

After: Automated Case Management System enabled courts to keep track of the pending cases from filing to disposition in a coordinated and timely manner.

Before: Without the adoption of harmonized food standards the food processing businesses have to meet the varying compliance requirements of different provinces.

After: Now the provinces have adopted the same harmonized food standards as introduced by PSQCA and a food processing business operating in one corner of the country can shelf its product anywhere in Pakistan.

Before: There was no time bound mechanism in place for the grant or refusal of the approval required for business operations by KP EPA.

After: Now, the approval process has been made time bound and authority is required to communicate the same within the stipulated timeframe.

Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.

After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce.

Before: Businesses suffer as commercial cases took a lot of time for resolving a business dispute, because of a huge litigation burden, causing delay and resulting in loss of confidence by businesses on the system.

After: Now, legislative changes enabled establishment of commercial courts have been made to fast-track dispute resolution.

Before: Section 05 of Factories Act authorized government to apply the provisions of Factories Act to smaller establishments with five or more employees.

After: Through an amendment, section 05 of Factories Act has been amended, thus smaller establishments can no more be regulated under the Factories Act.

Before: Firms were using the traditional manual system for registration with the Registrar of Firms, which was time consuming and adding cost.

After: Now firms can register themselves with the Registrar of Firms with less time and cost through the newly developed online system. 

Before: Food Sector Businesses had to manually get registrations with food authorities, which was very cumbersome process and also time consuming and costly 

After: Now online facility has been launched for registration of food products

Before: Registering property was a manual and very hectic process in which several verifications were required

After: The law has been amended and electronic verification of credentials is possible now.

Before: Businesses were facing difficulty getting drug licenses as Pharmacies and drug stores had to obtain drug licenses from provincial authorities which was time consuming and uncertain.

After: Now, the licensing process has been made time bound to ensure timely issuance of drug license.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons and grading of whitewash. Inspectors used to penalize businesses for small violations.

After: Businesses have been permitted to make hygiene related measures as per best practices. Now inspectors cannot challan businesses on lesser no. of spittoons or specific grade of whitewash.

Before: For new businesses, the registration process was frustrating as there was no time frame for the registration of the factories.

After: The factory registration process has been made timebound and the registration process has become efficient.

Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.

After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce.

Before: Businesses were facing delays in getting  approval for use of land under permissible use category as it used to take longer time than necessary.

After: An efficient timeline has been decided within which the process should be completed.

Before: Businesses were facing uncertainty as registrations for partnership were made without following any timeframe and in majority cases it took more time than necessary.

After: The partnership registration process has been made time bound, now the registration is required to be done within the stipulated time.

Before: For businesses, it was worrisome if they were caught-up in any legal dispute because there was no time limit for disposal of a suit and maximum no. of adjournments. Resolution of Commercial Cases was taking much time, in some cases even more than three years.

After: This reform lifted the confidence of businesses operating in the country as more than 50% of commercial cases are disposed of within the time limit of 180 days and within 2 adjournments. It will also improve Pakistan's ranking in this indicator in the Doing Business report.

Before: Timely decision from court is very important for businesses confronted with any dispute. Unfortunately, Commercial Cases were taking much time for resolving a business dispute, because of a greater number of other cases, causing delay and resulting in loss of confidence by businesses on the system.

After: Now, exclusive courts have been established for hearing Commercial Cases. Cases are being filled in these courts and disposal time of these cases has been reduced substantially.

Before: SMEs engaged in any professions or vocations business had to pay fees to obtain/ renew registration/ license to start/operate their business on annual basis.

After: Fees to obtain/renew Licensing of professions or vocations has been abolished under the “Punjab Local Government (Amendment) Act, 2021”.

Before: The process of labor registration, particularly processing of, the process of registration was taking around 7 days and payment of fee was also a burden for small businesses. Payment of fee took 4-5 days.

After: Waiver of registration fee has now made it easy for Companies to register online in one day thus save cost and time of business.

Before:Obtaining Construction Permits was a manual and cumbersome task

After: The process of Construction Permits has been simplified by automation and integration of different agencies, reducing time taken to obtain them.

Before: New companies needed to obtain separate incorporation certificates from several agencies, causing hassle and adding to the cost and time.

After: Joint incorporation certificate by 7 agencies is issued electronically in one day, with QR code for verification.

Before: Businesses were required to undergo a number of inspections for getting construction permits which was causing delay and hassle for SMEs.

After: After reform there are only 02 Inspections for low risk buildings; one before starting and other on completion. 

Before: Punjab Factories Act prescribed minute details like grading of whitewash and ensuring all surfaces are white washed. Inspectors used to penalize businesses for even minor violations concerning whitewashing of factory premises.

After: Now the businesses have been permitted not to compulsorily white wash the surface if it is made of the material which cannot be painted, varnished or whitewashed including marble tiles or similar material.

Before: Businesses have been facing difficulties importing non-biological feed additives, feed preparations, and food premixes due to the unnecessary requirement of providing sanitary and phytosanitary (SPS) certificates from exporting countries — even though such certificates are not issued for non-biological products.

After: The requirement to produce SPS certificates has been removed for non-biological products.

Before: Drug Sale license were issued by using manual system which was burdensome because of increased cost and compliance hassle.

After: Now, Drug Sale Licenses can be obtained by applying on newly developed online portal.

Before: The food processing businesses operating in one jurisdiction had to comply varying compliance requirements in order to operate in different jurisdictions across Pakistan.

After: Punjab has adopted the harmonized food standards as introduced by PSQCA and a food processing business operating in Punjab now can expand the business operations anywhere in Pakistan without varying compliance requirements.

Before: The businesses were experiencing unauthorized inspections by the inspectors of various departments such as ESSI, food department, industries department, and labour department.

After: With the feedback mechanism in place now the businesses can register their feedback about the conduct of the inspections.

Before: The drugs stores and pharmacies had to undergo a cumbersome process of renewal on periodic basis, as drug licenses were only valid for a period of 02 years.

After: The validity of drug license has been enhanced from 2 to 5 years to save drug businesses from hectic renewal process, reduce compliance burden and interaction with the department.

Before: No timelines were provided in the by-laws for approval of maps/ layout plans, resulting in uncertainty and unnecessary delays.

After: Now, the approval of map/ layouts is time-bound and businesses can plan for construction with certainty.

Before: For the transfer of motor vehicles, both the transferor and transferee used to visit excise office along with the hard copy of the transfer deed, making the process time-consuming.

After: Now, a biometric verification process has been introduced. The transferor can give the biometric verification receipt using the NADRA system, and excise department can verify the authenticity of it using the shared database before transferring the ownership of the vehicles.

Before: There was no efficient system of case and time management for judges and lawyers to track the progress of cases. Resultantly, cases were often adjourned and businesses faced delays in resolution.

After: Automated Case Management System enables courts to keep track of the pending cases, from filing to disposition, in a coordinated and timely manner.

Before: Businesses could only resolve disputes through the courts as there was no Alternative Dispute Resolution Mechanism.

After: “The Punjab Commercial Court Ordinance 2021 Section (3)” enables the establishment of an Alternative Dispute Resolution system in Punjab.

Before: There was no specified timeframe for the approval of building plans, leading to delays in the process.

After: Now, with specific timelines for issuance of NOCs/Permits in place, the process has become efficient.

Before: Businesses were bound to get an NOC from EPA for construction of buildings regardless of their risk category. This was causing delay and an additional cost to low risk small businesses.

After: Now, the NOC requirement has been removed for low-risk buildings.

Before: The process of labor registration was taking around 7 days and payment of fee was also a burden for small businesses. Payment of fee alone took 4-5 days.

After: Waiver of registration fee has now made it easy for Companies to register in one day with all relevant departments. Government of Sindh waived off registration fee of PKR 1,000 to reduce cost and time of business.

Before:A manual process to apply for Construction Permits meant that businesses had to put in much time and effort to obtain them.

After: The process of Construction Permits has been simplified by automation and integration of different agencies, reducing time taken to obtain them.

Before: Firms were using the traditional manual system for registration with the Registrar of Firms, which was costly and time consuming.

After: Now firms can register themselves with the Registrar of Firms online saving time and cost.  

Before: In civil courts, the disposal of commercial cases took a lot because of existing civil case burden, causing delay and resulting in loss of confidence by businesses in the system.

After: Now, exclusive courts have been established for hearing Commercial Cases. Cases are being filed in these courts and disposal time of these cases has been reduced substantially.

Before: New companies were reuired to obtain separate incorporation certificates from several agencies, causing hassle and adding to the cost and time.

After: Joint incorporation certificate by 07 agencies is issued electronically in one day, with QR code for verification.

Before: The validity period of fisheries license under the Fisheries Rules, 1983 was 01 financial year (July-June).

After: Now, the validity period of fisheries license has been increased from 01 year to 03 years.

Before: The drugs stores and pharmacies had to undergo a cumbersome process of renewal on periodic basis as drug licenses were only valid for a period of 02 years.

After: To save drug businesses from hectic renewal process, reduce compliance burden and interaction with department, the validity of drug license has been enhanced from 2 to 5 years.

Before: The validity period of license granted to auto workshops was just 01 year and the owners have to get it renewed every year.

After: Now, the validity period of the auto workshop license has been extended to 03 years instead of 01 year.

Before: There was no timeframe specified for approval of building plans which caused delays in building plans approvals

After: Now, with specific timelines for issuance of NoCs/Permits in place the process has become efficient.

Before: Without the adoption of harmonized food standards the food processing businesses have to meet the varying compliance requirements of different provinces.

After: Now the provinces have adopted the same harmonized food standards as introduced by PSQCA and a food processing business operating in one corner of the country can shelf its product anywhere in Pakistan.

Before: Pre-Partition Factories Act prescribed minute details like placement of spittoons. Inspectors used to penalize businesses for small violations.

After: Businesses have been permitted to make hygiene related measures as per best practices. Now, the requirements to place spittoons has been abolished.

Before: Factories Act prescribed minute details like grading of whitewash and ensuring all surfaces are white washed. Inspectors used to penalize businesses for even minor violations like whitewashing of factory premises.

After: Now the businesses have been permitted not to compulsorily white wash the surface if it is made of the material which cannot be painted, varnished or whitewashed including marble tiles or similar material.

Before: For new businesses, the registration process was cumbersome as there was no time frame for the registration of the factories.

After: The factory registration process has been made timebound within Fourteen (14) days, and the registration process has become efficient.

Before: Businesses faced difficulties in obtaining drug licenses, as pharmacies and drug stores were required to get them from drug regulatory authorities. It was a time-consuming process.

After: The licensing process has been made time bound to ensure timely issuance of drug license i.e. within 45 days.

Before: Labour departments used to inspect all businesses on frequent basis, even inspecting businesses where no risk of safety and security was involved.

After: Now, for compliant and low-risk businesses, the number of inspections has been reduced, and unnecessary inspections have been eliminated.

Before: Earlier there were no pre-set timelines for registration of partnerships once the application was filed. The registering partnerships had to wait for registration before subsequent start of operations.

After: The Partnership (Sindh Amendment) Act, 2022 has prescribed the timelines. Now, a partnership business can be registered with the registrar of firms within a short period of 07 working days.

Before: It was mandatory for all businesses to employ 20% of the workforce as apprentices which meant extra cost to businesses for unskilled employees.

After: Now, for the SMEs, mandatory apprenticeship threshold has been reduced to 10% of the workforce.

Before: There was no time bound mechanism in place for the grant or refusal of the approval required for business operations by Sindh EPA.

After: Now, the approval process has been made time bound and authority is required to communicate the same within the stipulated timeframe.

Before: There was no efficient system for case and time management for judges and lawyers to track progress of cases. Resultantly, adjournments were common and businesses use to face delay in case resolution.

After: The Case Management System enabled courts to keep track of the cases, from filing to disposition in a coordinated and timely manner.

Before: There was no Alternative Dispute Resolution mechanism in place, therefore, courts were the only forum to resolve the business-related disputes.

After: Sindh Government has made amendment in The code of civil procedure (Act#V of 1908) “The Code of Civil Procedure (Sindh Amendment) Act 2018 to introduce Alternative Dispute Resolution mechanism.

Before: For businesses, becoming involved in legal disputes was a major concern, as there were no time limits for the disposal of suits or a cap on the number of adjournments. As a result, the resolution of commercial cases often took a significant amount of time—sometimes exceeding three years.

After: This reform has enhanced the confidence of businesses operating in the country, as more than 50% of commercial cases are disposed of within the 180-day time limit and a maximum of two adjournments. It is also expected to improve Pakistan’s ranking in this indicator in the Doing Business report.

Before: Registering property was a manual and hectic process. There was no provision in law to create online repository and authorize electronic verification.

After: The law has been amended and electronic verification of credentials is possible now.

Before: No timelines were provided in the by-laws for approval of maps/ layout plans, resulting in uncertainty and delays.

After: Now, the approval of map/ layouts is time bound, and businesses can plan for construction with certainty.

Before: Government departments used to specify furniture and fixture made of Sheesham / Keekar wood in their procurement tenders.

After: The requirement for furniture made of Sheesham/ Keekar wood was eliminated. Now, furniture businesses can bid with alternatives of Sheesham / Keekar wood.