Government plans to introduce firewall to combat harassment from agencies

The Government of Pakistan is taking steps to protect legitimate businesses from undue harassment by various investigative agencies, such as the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), and Federal Board of Revenue (FBR). Special Assistant to the Prime Minister (SAPM) for Industries & Production, Haroon Akhtar Khan, introduced the concept of a “firewall” mechanism to safeguard corporate entities against arbitrary actions.

Akhtar Khan highlighted the significance of vetting any investigations involving corporate entities by specific bodies like the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), Federation of Pakistan Chambers of Commerce & Industry (FPCCI), or Karachi Chamber of Commerce & Industry (KCCI). The aim of this mechanism is to ensure that honest entrepreneurs are shielded from unwarranted harassment while not providing protection to wrongdoers.

During his recent visit to the KCCI, Akhtar Khan vocalized the government’s commitment to implementing robust industrial policies to drive export-led growth, decrease import reliance, and bolster foreign exchange reserves. He stressed the importance of prioritizing domestic investors and acknowledged the concerns raised by KCCI. Akhtar Khan reiterated the Prime Minister’s vision of propelling Pakistan towards becoming the next Asian Tiger through a focus on industrialization.

The SAPM attributed the downfall of significant industries in the past to policy failures but noted recent improvements such as a 10% policy rate reduction and lowered electricity tariffs. Akhtar Khan announced forthcoming initiatives including a new bankruptcy law, the establishment of committees to resuscitate failing units and the hiring of a globally respected consultant to craft Pakistan’s first comprehensive industrial policy. Additionally, the restructuring of SMEDA and transforming the Ministry of Industries into a centralized industrial affairs hub are also in the works.

In a bid to enhance financial access, Akhtar Khan expressed plans to set up a committee dedicated to ensuring credit accessibility for Small and Medium Enterprises (SMEs) and the agricultural sector. He criticized the current system that requires around 350 certifications to initiate a business, deeming it a hindrance to the ease of conducting business operations. To address this, a high-powered committee will concentrate on simplifying the certification process and tackling associated challenges in a streamlined manner.