ISLAMABAD: The government plans to remove cross-subsidy from industrial power tariffs and abolish peak rates under the new industrial policy to boost exports, according to media report.
Changes in laws are also being proposed, including the introduction of a unified insolvency law. At the prime minister level, it has been agreed that industrialists will be protected from direct interference by the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), and Federal Board of Revenue (FBR).
The government has decided to amend Section 41B and Section 42A of the SECP Act 1947. Under the new rules, law enforcement agencies must obtain SECP approval before taking any action against regulated persons, including stock exchanges, clearing houses, insurance companies, and non-banking financial companies.
The amendment clearly defines foreign investors, including NICOP holders, ensuring protection from arbitrary interference by external authorities.
“The Power Division will remove cross-subsidy from industrial power tariffs and abolish peak rates,” top official sources confirmed to private media.
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The draft industrial policy, expected to be unveiled soon, also includes the announcement of the Drawback of Local Taxes and Levies (DLTL) scheme for exporters, in coordination with the Finance Division and federal cabinet approval.
To clear pending refunds worth billions of rupees, the FBR will repay sales tax, deferred Refund Payment Orders (RPOs), customs rebates, income tax, and provincial taxes, gradually reducing the time needed for refunds. The Petroleum Division has also agreed to remove cross-subsidy from industrial gas prices.
To address tax anomalies, exporters will be subject to minimum tax applicable to other businesses if fiscal space allows after the current IMF program. Other taxes will be collected quarterly, similar to other businesses.
The industrial policy also aims to simplify regulatory procedures, limiting audits of exporters to once every three years. Existing laws lack a comprehensive insolvency framework, making restructuring difficult and costly.
To address this, the government plans amendments to the Corporate Rehabilitation Act 2018 and Corporate Restructuring Companies Act 2016, broadening the scope of eligible debtors, protecting companies, and facilitating smoother restructuring.
