Government plans tariff reforms, regulatory simplification and corporate law amendments in Budget 2026-27

Pakistan is preparing to introduce a broad policy package aimed at improving the business environment as part of the federal budget for 2026–27, according to official sources.

The measures are expected to include further tariff reforms, regulatory simplification, and amendments to corporate laws to encourage investment and reduce the cost of doing business.

Officials said the next phase of duty reductions under the National Tariff Policy will be legislated through the upcoming budget as the government moves to rationalize import duties and improve industrial competitiveness.

The authorities are also working to simplify and remove non-tariff barriers that businesses say increase compliance costs and create uncertainty for investors and traders.

As part of a wider regulatory reform initiative, the government plans to establish a national regulatory registry to serve as a centralized source of business-related regulations.

The registry, initially covering the federal government and Islamabad Capital Territory administration, is targeted for completion by June 2027 and is intended to improve transparency and reduce regulatory uncertainty for businesses.

Officials further said amendments to the Companies Act are being finalized for submission to Parliament by the end of June 2026.

The proposed amendments are expected to focus on lowering regulatory burdens, reducing transaction costs, and strengthening corporate governance and transparency for both listed and unlisted companies.

In parallel, the government also plans to gradually phase out fiscal incentives available to Special Economic Zones (SEZs), Special Technology Zones (STZs), and Export Processing Zones (EPZs) by 2035.

Authorities believe the move will reduce fiscal pressures and create a more level playing field for trade and investment across sectors.

The reforms are expected to be formalized through amendments to SEZ and STZ laws by June 2027, while exporters operating in EPZs may also lose the option to sell part of their production in the domestic market.

Economists say the proposed reforms reflect Pakistan’s broader effort to modernize its business framework, improve investment conditions, and support long-term economic stability.