Law of Pakistan

Module 7

Business, employment, tax and economic regulation: commercial and banking law, the Companies Act 2017 and the SECP, setting up and operating a business and foreign investment, provincial labour law and social security, and federal and provincial taxation

A person who starts a business in Pakistan deals with four layers of law at once. Federal law governs companies, banking, customs, income tax and sales tax on goods; provincial law governs labour, services tax, land and local licences; regulators such as the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan and the Federal Board of Revenue (FBR) administer the rules day to day; and courts and tribunals decide disputes. The Eighteenth Amendment moved labour and much economic regulation to the provinces, so the same business can face different rules in Lahore and in Karachi. The Companies Act 2017 gives a modern, familiar corporate law that a lawyer from England, India or the United States will recognise, but the practical steps, tax registrations, foreign exchange rules and labour compliance are where mistakes happen. This module gives the map, not the current figures, which change often and must be checked at the authority’s website.

General education on the law of Pakistan, using invented people and businesses. It states laws and procedures in simplified form and is not legal advice. The law and its practice change, and every case turns on its facts, the authority and the province concerned. It does not offer legal representation or a legal opinion on any case. Consult a Pakistani advocate for any real matter.

This course was written on 6 November 2026. To the best of our knowledge, it describes the law of Pakistan as it stood on that date. Laws change, and we may have missed or misunderstood something. If you notice a change, or have other information, please do not hesitate to contact us: we will review it and update the course. We do not claim to be the final source of the law.