Federal Minister for Board of Investment (BOI), Mr. Qaiser Ahmed Sheikh, chaired a meeting of the Cabinet Committee on Regulatory Reforms (CCoRR) to review regulatory challenges and propose reforms in the dairy and beverage sector. The meeting was attended by Special Assistant to the Prime Minister (SAPM) on Industries and Production, Mr. Haroon Akhtar Khan, along with senior officials from BOI and relevant federal and provincial departments, as well as key private sector stakeholders.
The meeting followed deliberations from the previous session, which focused on the fisheries sector, while today’s agenda centered on the dairy and beverage sector—one of Pakistan’s most critical economic segments. The sector contributes approximately 14.04% to the national GDP and supports the livelihoods of nearly 8 million rural families. Pakistan ranks as the 4th largest dairy producer globally.
The reforms team presented a comprehensive regulatory mapping, identifying 40 regulatory requirements across 25 departments, including 17 federal requirements (9 departments), 17 provincial requirements (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% duplication and an estimated processing time of 2040 days. The reforms team proposed eliminating 5 regulations, simplifying 9, digitizing and streamlining 18, and retaining 8.
Implementation of these reforms is expected to reduce documentation requirements from 235 to 83, generate economic savings of Rs. 58.4 billion, and reduce processing time to 634 days.
Speaking on the occasion, Federal Minister Qaiser Ahmed Sheikh emphasized 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 prioritize economic growth.
Dr. Zeelaf Munir, Chairperson of the Pakistan Business Council (PBC), cited the example of neighboring 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% 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.
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.
The Committee was informed by Additional Secretary BOI, Mr. Zulfiqar Ali, that the matter of harmonizing 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.
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.
The meeting concluded with a consensus on the urgent need for digitization, harmonization 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.
