Farooq Awan

The government has outlined a comprehensive set of regulatory reforms aimed at simplifying licensing procedures, reducing compliance burdens and improving the overall business environment as part of the Prime Minister’s Economic Governance Reforms (PM-EGR), according to an official document released by the Finance Division.

The reform agenda recognises that complex regulations, overlapping requirements and lengthy approval processes have historically constrained private sector growth and discouraged investment. To address these challenges, the government has prioritised regulatory streamlining to make it easier for businesses to operate, expand and contribute to economic growth.

A central element of the reform programme is the rationalisation of licensing and approval processes across federal institutions. The document outlines plans to reduce the number of permits and clearances required for business operations, eliminate duplicative procedures and simplify regulatory frameworks. By reducing unnecessary regulatory layers, the reforms aim to lower compliance costs and shorten approval timelines for businesses.

The reforms also focus on improving coordination among regulatory bodies to ensure consistency in enforcement and interpretation of rules. Overlapping jurisdictions and inconsistent requirements have previously created uncertainty for businesses. The new framework seeks to harmonise regulatory practices, clarify mandates and promote a more predictable regulatory environment.

Another key component of the reform agenda is the introduction of risk-based regulation. Under this approach, regulatory oversight will be aligned with the level of risk posed by different activities, allowing authorities to focus resources on high-risk areas while easing compliance requirements for low-risk businesses. This is expected to reduce administrative burdens without compromising regulatory objectives.

The document further emphasises the importance of digitalisation in improving regulatory efficiency. Expanding online portals for licensing, registration and compliance reporting is expected to enhance transparency, reduce processing times and limit discretionary decision-making. Digital tools will also support better tracking of applications and regulatory performance.

Improving the ease of doing business is a central objective of the reform effort. By streamlining regulations and improving coordination among regulatory agencies, the government aims to create a more predictable and investor-friendly environment. The reforms are expected to encourage formalisation, attract investment and support private sector-led growth.

The Finance Division noted that effective implementation of regulatory reforms will require strong coordination across ministries, regulatory authorities and provincial governments. Continuous monitoring and periodic reviews are planned to ensure that reforms remain responsive to business needs and evolving economic conditions.

The document concludes that regulatory reform is a key pillar of the broader economic governance agenda. By simplifying rules, strengthening regulatory institutions and reducing compliance costs, the government aims to foster a more competitive, transparent and growth-oriented business environment.

Credit: INP-WealthPk