Govt to roll out second phase of regulatory reforms by March

The federal government is set to introduce the second phase of regulatory reforms by March 2025, aiming to enhance the ease of doing business and attract investment. The plan was discussed during a recent meeting of the Economic Coordination Committee (ECC), where officials reviewed efforts to modernise Pakistan’s regulatory framework.

The ECC inquired about progress on regulatory reforms, following the first package, which is currently awaiting cabinet approval. The Board of Investment (BOI) informed the committee that the second phase of reforms is being developed and will be implemented by March. 

The committee emphasised that these reforms should be executed alongside other investment-friendly initiatives to boost investor confidence.

During the meeting, the BOI also briefed officials on the Digital Economy Enhancement Project (DEEP), which aims to strengthen Pakistan’s digital infrastructure and improve governance through automation. 

The BOI is leading DEEP component-II, a segment focused on modernizing the regulatory system. A key outcome of this initiative is the Pakistan Business Portal, which will streamline business regulations, eliminate outdated laws, and introduce an e-payment system for business-related charges.

The World Bank-approved DEEP project was declared effective on May 2, 2024, with a total cost of $78 million, including $15 million (Rs3.5 billion) allocated for BOI’s regulatory component. For the first fiscal year (2024-25), Rs477 million has been allocated for DEEP component-II. 

Initially, all project funds were placed under a single account managed by the IT Ministry, but following recommendations from the Central Development Working Party (CDWP) on August 13, 2024, the IT Ministry, NADRA, and BOI were permitted to open separate revolving fund accounts for better fund management.

The ECC’s approval is expected to facilitate faster implementation of digital reforms, ensuring Pakistan’s regulatory environment becomes more business-friendly while promoting transparency and efficiency in governance.