Pakistan's Regulatory Reforms Target Dairy and Beverage Sector Efficiency
The recent meeting chaired by Federal Board of Investment Minister Qaiser Ahmed Sheikh focused on regulatory reforms in Pakistan's dairy and beverage sector. The Cabinet Committee on Regulatory Reforms (CCoRR) discussed proposals to address regulatory challenges affecting this critical economic segment, which contributes approximately 14.04% to the national GDP and supports nearly 8 million rural families.
The sector faces 40 regulatory requirements across 25 departments, including significant inefficiencies in Sindh where establishing a food processing unit necessitates 235 documents. The proposed reforms aim to decrease documentation from 235 to 83, potentially saving Rs58.4 billion and reducing processing time from 2,040 days to 634 days.
Federal Minister Sheikh emphasized the importance of enhancing investment and easing business operations in Pakistan. He noted that regulatory matters are largely provincial, yet collective action is needed to eliminate obstacles. Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, highlighted the negative impact of excessive regulations on foreign direct investment.
Dr. Zeelaf Munir from the Pakistan Business Council cited India's competitive regulatory environment as a model for attracting investment. Despite being the 4th largest dairy producer, Pakistan has limited exports to major markets like the European Union.
Key discussions included Sindh Food Authority's licensing requirements and harmonizing food standards at the national level. The meeting also addressed issues with regulatory frameworks for boilers, vessels, and building control. Proposals included integrating with Sindh Business One Stop Shop and introducing time-bound approvals.
The committee agreed on the urgent need for digitization and better coordination between federal and provincial levels. The reforms are intended to improve Pakistan's business environment and attract both domestic and foreign investments.
