The Cabinet Committee on Regulatory Reforms (CCoRR), chaired by Federal Board of Investment (BOI) Minister Qaiser Ahmed Sheikh, convened on Friday to address regulatory challenges in Pakistan's dairy and beverage sector. The meeting included Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, senior BOI officials, representatives from federal and provincial departments, and key private sector stakeholders. This session followed previous deliberations on the fisheries sector, shifting focus to the dairy and beverage industry, which contributes approximately 14.04 percent to the national GDP and supports nearly 8 million rural families. Pakistan ranks as the 4th largest dairy producer globally.
Regulatory Mapping and Identified Inefficiencies
The reforms team presented a comprehensive regulatory mapping that identified 40 regulatory requirements across 25 departments. These included 17 federal requirements from 9 departments, 17 provincial requirements from 10 departments, and 4 requirements at the local government level. Significant structural inefficiencies were highlighted, particularly in Sindh, where establishing a food processing unit requires 235 documents, with 57 percent duplication and an estimated processing time of 2,040 days. The proposed reforms aim to eliminate 5 regulations, simplify 9, digitize and streamline 18, and retain 8. Implementation is expected to reduce documentation from 235 to 83, generate economic savings of Rs58.4 billion, and cut processing time to 634 days.
Ministerial Emphasis on Ease of Doing Business
Federal Minister Qaiser Ahmed Sheikh underscored that the ultimate objective of these reforms is to enhance investment in Pakistan and promote ease of doing business. He noted that while regulatory domains are largely provincial, collective efforts are required to remove barriers. He expressed concern over resistance from provinces and stressed the need for greater representation and input from provincial governments and private sector stakeholders. SAPM Haroon Akhtar Khan highlighted that excessive and overlapping regulations are a major impediment to foreign direct investment (FDI). He remarked that provinces should compete to facilitate businesses; however, the current trend reflects an increase in regulatory burdens. He emphasized the need for a shift in mindset to prioritise economic growth.
Private Sector Perspectives and International Comparisons
Dr Zeelaf Munir, Chairperson of the Pakistan Business Council (PBC), cited the example of neighbouring India, where provinces compete to offer minimal regulations to attract investment through a single regulatory authority. She also pointed out that despite being the 4th largest dairy producer, Pakistan has limited exports to major markets such as the European Union. Representatives from FPCCI Karachi endorsed the importance of the dairy sector and supported the reform agenda. Dr Shehzad Amin, a dairy expert from FPCCI, highlighted that despite excessive regulations, product quality remains questionable. He noted that Pakistan produces approximately 72 billion litres of milk annually, yet 40 percent of children under five suffer from stunted growth. He emphasized the absence of a safe milk law and supported reforms focused on quality assurance rather than excessive compliance.
Pending Regulatory Issues and Consensus
Several key regulatory issues were discussed where consensus with departments remains pending. These included Sindh Food Authority’s food business licensing and product registration requirements. The reforms team proposed eliminating certain requirements or extending renewal periods from annual to three or five years. Additional Secretary BOI Zulfiqar Ali informed the committee that the matter of harmonising food standards has already been taken up at the Council of Common Interests (CCI). The CCI had mandated provinces to adopt national standards set by the Pakistan Standards & Quality Control Authority (PSQCA) to ensure uniformity; however, implementation remains pending. Both the federal minister and SAPM emphasized the need for immediate enforcement of the CCI decision.
Boiler Permits, Building Controls, and Environmental Approvals
Discussions also covered regulatory issues related to boiler and vessel permits, where concerns were raised regarding revenue dependence. The leadership reiterated that the primary objective of regulation should be facilitation rather than revenue generation, which can instead be achieved through increased business activity. Reforms related to the Sindh Building Control Authority were also reviewed, including completion certificates and building plan approvals. The reforms team proposed integration with the Sindh Business One Stop Shop (SBOSS), introduction of time-bound approvals (e.g., within two weeks), and improved tracking systems. SAPM Haroon Akhtar Khan stressed the importance of accountability in certifications, particularly in safety incidents such as fires. Additional areas discussed included environmental approvals, labour and HR department processes, warehouse registration, and supply chain regulations. The reforms team proposed digitization, elimination of annual renewals, and better inter-departmental coordination.
Conclusion and Commitment to Reforms
The meeting concluded with a consensus on the urgent need for digitisation, harmonisation across federal and provincial levels, and improved data sharing mechanisms. Both Federal Minister Qaiser Ahmed Sheikh and SAPM Haroon Akhtar Khan underscored that increasing investment and facilitating businesses must remain the central focus of all regulatory frameworks. The Board of Investment reaffirmed its commitment to advancing regulatory reforms aimed at improving Pakistan’s business environment and attracting both domestic and foreign investment.
