Sector-wide reforms initiated
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The government is going to introduce a set of reforms in different sectors of the country to ensure ease of doing business.
The Cabinet Committee on Regulatory Reforms (CCoRR) in its recent meeting agreed to a set of reforms to be introduced in the coming days.
The first meeting of the Cabinet Committee on Regulatory Reforms (CCoRR) was held at the Board of Investment on May 6, 2025, in line with Prime Minister Shehbaz Sharif's vision to streamline Pakistan's regulatory landscape and improve the ease of doing business.
The reforms are going to be introduced in multiple sectors including the Drug Regulatory Authority of Pakistan (DRAP), National Highway Authority (NHA), Pakistan Halal Authority (PHA), and the Federal Seed Certification and Registration Department (FSC&RD).
One key proposal calls for DRAP to sign a Memorandum of Understanding (MoU) with the Intellectual Property Organisation of Pakistan (Pak-IPO) to ensure real-time data sharing related to trademark registration.
Currently, a lack of coordination between the two entities has resulted in overlapping brand name claims. The proposed alignment would be in line with international best practices.
The committee has also agreed that DRAP should adopt the principle of "obtain once, use multiple times" to eliminate the duplication of documents in its licensing processes.
Additionally, the committee has directed the authority to prescribe fixed timelines for the evaluation and issuance of licenses, certificates, and permits.
The cabinet body has also directed Islamabad Healthcare Regulatory Authority (IHRA) to outsource licensing and registration inspections of healthcare facilities to accredited third-party inspectors (TPIs) in a bid to reduce procedural delays.
Mandatory inspections, which are currently handled in-house, have been cited as time-consuming and inefficient.
In another move, IHRA has been directed to digitise its complaint management system to include businesses alongside patients, ensuring a more comprehensive and tech-enabled grievance redressal mechanism.
Under the reforms, the PHA has been directed to revise its certification fee structure, which currently imposes a 0.025% turnover fee on businesses. The fee has been labelled as an indirect tax that discourages growth and hurts export competitiveness.
The committee has agreed to exempt exporters from this fee and to automate and integrate the entire Halal certification process with the Pakistan Single Window (PSW) for enhanced efficiency.
The committee has agreed to several reforms in Islamabad Capital Territory (ICT) under the Labour Welfare Department (LWD) and the Registrar of Firms (ROF):
Currently, there is no defined timeline for boiler inspections during manufacturing unit registration. The committee has agreed to set a clear timeline, similar to India's 30-day inspection requirement.
The factory registration process remains fully manual, requiring physical visits, extensive paperwork, and repeated follow-ups.
ICT has proposed streamlining and digitising the system. CCORR is expected to review implementation strategy and financial requirements.
The partnership firm registration process currently demands in-person appearances from all partners and witnesses. Authorities now proposed moving to a fully digital registration process. CCORR may direct ICT to set a specific implementation timeline.
A proposal has been made to extend the validity of trade licenses, which are currently valid for only one year. Currently, trade licenses require annual renewals and mandatory inspections. The proposal involves extending the validity to three years to reduce the compliance burden. CCORR may issue formal instructions to implement this change.
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