Govt to protect industrialists from NAB, FIA, and FBR

Islamabad: The government has decided to remove cross-subsidies from industrial electricity tariffs and cancel peak rates under the proposed industrial policy to boost exports.

The government has also decided to make changes in laws, including introducing a comprehensive insolvency law.

It has been decided at the Prime Minister’s level that industrialists will be protected from direct contact with the National Accountability Bureau (NAB), the Federal Investigation Agency (FIA), and the Federal Bureau of Revenue (FBR). For this purpose, it has been decided to amend Section 41-B and Section 42-A of the SECP Act 1947, under which it will be mandatory for law enforcement agencies to obtain permission from the Securities and Exchange Commission of Pakistan (SECP) before taking any action.

According to the amendment draft, no inquiry, investigation, or action against regulated entities—be it stock exchanges, central depositories, clearing houses, non-banking finance companies (traditional or digital), insurance companies, or brokers—can be initiated by any federal or provincial investigative agency without a reference from the SECP.

Further, if a matter is already before the SECP, no other agency will have the authority to take action on it.

The amendment draft also provides clear legal protection to foreign investors (including NICOP holders) to ensure protection from arbitrary interference by external entities.

“The Power Division will eliminate cross-subsidies from industrial electricity tariffs and will also abolish peak rates,” according to the reports. The draft of the proposed industrial policy is expected to be released soon.

Accordingly, the Ministry of Commerce, in consultation with the Ministry of Finance and with the approval of the Federal Cabinet, has agreed to launch the Drawback of Local Taxes and Levies (DLTL) scheme for exporters.

The FBR has also decided to clear pending refunds worth billions of rupees, including sales tax (deferred refund payment orders), customs rebates, income tax, and provincial taxes. Sales tax refunds will be paid on time, and the process will be expedited over time.