The government is preparing a legally binding framework under the proposed National Industrial Policy to allow the Prime Minister’s Office to issue directives for the protection of foreign direct investment and investors, aimed at limiting undue intervention by investigation agencies such as the National Accountability Bureau and the Federal Investigation Agency.
According to sources cited by the Express Tribune, the policy will empower the PM Office to issue protection directives where required and establish a National Industrial Revival Commission to provide an institutional forum for resolving disputes involving investors. Under the proposal, investigation agencies would be barred from initiating action against companies while proceedings are under way before the commission.
The framework defines a foreign investor as a foreign company, a non-citizen individual, or a holder of a National Identity Card for Overseas Pakistanis. No coercive action relating to regulated activities or securities business would be allowed against such investors without prior approval from the PM Office or another authority notified under the policy.
Sources said amendments have been prepared in consultation with the Securities and Exchange Commission of Pakistan to prevent undue interference by authorities including the FBR, NAB and FIA. The proposed provisions would supplement existing laws governing foreign investment protection.
Under the draft, no authority would be permitted to impair or disrupt regulated business activities, including through seizure of assets or records, sealing of premises or arrest of personnel, without the required approvals. Pending cases before courts prior to the enactment of the amendments would continue independently of the commission’s jurisdiction.
The proposal includes penal provisions to enforce compliance, with violations punishable by up to 30 days’ imprisonment or a fine of up to Rs1 million. Officials said the aim is to reduce harassment of regulated entities engaged in lawful business and improve investor confidence.
The policy also proposes changes to the anti-money laundering and countering financing of terrorism framework to introduce safeguards for regulated entities and customers. Amendments to Sections 41B and 42A of the SECP Act are proposed, including mandatory SECP approval before law enforcement action in relevant cases.
In addition, the draft recommends improving access to export financing by expanding use of the Export Financing Scheme, allowing business-to-business letters of credit, invoice-backed financing and credit risk insurance, and removing personal guarantees for directors. Other proposals include lowering capital risk weights for medium-sized firms, introducing sector-specific bonds, improving digital payment access, strengthening venture capital, easing reinsurance for Exim Bank, and reviving debt resolution mechanisms for distressed industrial units.
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