Qudsia Bano

Pakistan’s regulatory environment is undergoing a remarkable shift as key institutions step up efforts to revitalize economy, restore investor confidence, and drive long-overdue reforms. With a sharper focus on accountability, transparency, and market competitiveness, the country’s core regulators are assuming a more central role in shaping a resilient economic future, reports WealthPK.

The Competition Commission of Pakistan has adopted a more assertive stance in tackling monopolistic practices and deceptive marketing. The Commission has increased the scrutiny of mergers and acquisitions, enforced strict penalties on anti-competitive behaviour, and launched awareness campaigns to foster a culture of compliance in the business community.

“The Commission’s proactive approach is building a healthier market environment. But to function effectively and independently, it needs legislative backing and greater financial autonomy,” Nadia Zafar, policy and legal advisor at Askari Bank Limited, told WealthPK. Simultaneously, the Federal Board of Revenue (FBR) has taken bold steps to overhaul the tax system.

Among its most ambitious reforms is the elimination of non-filer category – a move aimed at plugging the tax loopholes and broadening the base. The FBR has also begun clearing long-delayed tax refunds, injecting liquidity into key sectors such as textiles and exports. Yet, the industry stakeholders remain cautious.

“Structural reforms in tax administration must be accompanied by digitization and simplification,” said Dr. Shahid Kardar, a former economist of the State Bank of Pakistan. “We need a system that rewards compliance and removes the fear of arbitrary audits,” he said. Meanwhile, the State Bank of Pakistan (SBP) has maintained a steady course to stabilize monetary policy.

The recent interest rate adjustments and controlled inflation have helped ease borrowing costs, while the bank’s push for digital banking and fintech solutions is gradually expanding financial inclusion. Special programs to support small and medium enterprises (SMEs) and women-led businesses are being seen as steps toward a more inclusive financial ecosystem.

The Securities and Exchange Commission of Pakistan (SECP) has also intensified its focus on regulating the capital markets and improving corporate governance. However, the recent regulatory tightening around Non-Banking Financial Companies (NBFCs) has raised concerns among the foreign investors who cite increasing compliance burdens as a deterrent.

“Despite occasional criticism, the collective momentum of these institutions signals a shift in the right direction,” said Kardar. “As reforms continue to take root, Pakistan’s regulators are positioning themselves not merely as watchdogs, but as active enablers of growth, innovation, and investment,” he said.

Experts cautioned, however, that institutional efficiency, inter-agency coordination, and investor-centric policy frameworks are critical to sustaining this momentum. In a rapidly evolving global economic environment, Pakistan’s ability to balance regulation with business facilitation may well determine its economic trajectory for years to come.

Credit: INP-WealthPk