Insights Categories: Alerts

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Why “Act of God” clauses fail in armed conflicts?

In this alert, we examine the allocation of risk in commercial contracts and marine insurance frameworks in the context of armed conflict affecting Gulf trade routes. Disruptions to shipping, port operations, and cargo transit during periods of hostilities expose structural weaknesses in force majeure clauses, war risk cover, and liability regimes that are often drafted for peacetime conditions. These issues arise across shipping and logistics arrangements, terminal operations, freight forwarding structures, and cross-border trade contracts, where parties rely on standard form provisions and insurance clauses that may not adequately respond to conflict-driven losses.

Navigating the New Frontier of Data Privacy in Pakistan

As Pakistan moves toward a comprehensive digital economy, the legal framework for data privacy is undergoing a seismic shift. For organizations handling citizen data, the transition from voluntary best practices to mandatory legal obligations is now a critical business imperative. This note outlines the salient features of the pending Personal Data Protection Bill (“PDPB”), 2023 (latest published draft, May 2023), and the “Mandatory Data Protection Measures for Organizations Handling PII” issued in August 2025 by the National Cyber Emergency Response Team (“PKCERT”) (the “PKCERT Advisory”).

Pre-bid tender preparation and clarification processes in Pakistan

In this alert, we examine recurring challenges in pre-bid preparation and clarification processes in public procurements in Pakistan. Public procurements in Pakistan are increasingly structured around comprehensive RFP and tender packages that integrate technical specifications, qualification criteria, prescribed forms, and draft contracts into a single, interdependent framework. This approach is now common across public private partnerships, infrastructure concessions, energy projects, transport and aviation procurements, urban development schemes, strategic joint ventures, and privatisation-related transactions.

Unlocking Pakistan’s Deep-Sea Fishing potential through structured investment

In this article, we examined Pakistan’s evolving regulatory framework governing foreign participation in the deep-sea fishing sector, with a particular focus on the legal pathways available to international investors seeking to deploy capital and technology in this underdeveloped yet high-potential industry. We analysed the joint venture requirements, licensing regime, and compliance obligations that shape market entry, and assessed how recent policy initiatives, including the role of the Special Investment Facilitation Council, aim to facilitate structured and sustainable foreign investment in Pakistan’s deep-sea fisheries.

Navigating Pakistan’s regulatory landscape for Seafood exports

ABS & Co has reviewed the regulatory framework governing the establishment of seafood processing and export facilities in Pakistan, a sector that presents significant potential for high value investment. As global demand for processed seafood increases, investors are exploring opportunities to convert Pakistan’s abundant fish catch into internationally compliant, high value products. A clear understanding of the applicable legal requirements is essential before determining where and how to establish a processing facility.

The Virtual Assets Ordinance, 2025: A New Regulatory Framework for Virtual Assets and Virtual Assets Service Providers

In this article, we examined Pakistan’s introduction of the Virtual Assets Ordinance 2025, enacted on 8th July 2025, which establishes the country’s first comprehensive regulatory framework for virtual assets and Virtual Asset Service Providers. This landmark development marks a significant shift toward structured oversight of cryptocurrency and digital assets in Pakistan, providing long-awaited regulatory clarity for foreign crypto exchanges, fintech platforms, blockchain companies and other service providers seeking to enter and operate within a regulated virtual assets market.

Audit objections and public contracts: The limits of post-award intervention

Audit objections are frequently raised after award and execution of public contracts. They can trigger demands for repayment or recalculation of amounts that were priced and agreed at tender stage. Recent matters in large infrastructure procurement illustrate the legal position: the Public Procurement Rules 2004 require procuring agencies to issue precise and unambiguous bidding documents, and once a contract is awarded on that basis, the agreed terms govern the parties’ rights and obligations. Attempts to re-open price adjustment inputs or to substitute a different basis after execution cut across the statutory scheme for transparent and competitive procurement.

Enforcement of foreign arbitral awards in Pakistan and the public policy exception (Part III of III)

This third article in a three-part series, prepared in collaboration with Penningtons Manches Cooper, focuses on the enforcement of foreign arbitral awards in Pakistan and the scope of the public policy exception. It traces the evolution of Pakistan’s arbitration framework following the enactment of the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, examines the Supreme Court’s landmark clarification in Taisei Corporation vs. A.M. Construction Company, and highlights how recent jurisprudence has aligned Pakistan with international enforcement standards under the New York Convention.

Take-or-pay clauses in Pakistan’s energy sector: enforceability, judicial trends, and investor implications (Part II of III)

This second article in a three-part series, produced in collaboration with Penningtons Manches Cooper, examines the enforceability of Take-or-Pay clauses in Pakistan’s energy sector. In light of rising energy costs, declining demand for grid-based electricity, and the Government’s decision to prematurely terminate several Power Purchase Agreements (PPAs), it explores how Pakistani courts, including the Supreme Court, have addressed disputes arising from such clauses. By analyzing recent case law, including the landmark Orient Power decision, it highlights judicial trends that shape contractual risk allocation, investor protection, and the long-term sustainability of energy projects in a rapidly evolving market.

Punjab imposes sales tax on services on rental payments

The Punjab Finance Act, 2025, presented to the Provincial Assembly of Punjab on June 16, 2025, has brought transformative changes to the sales tax regime under the Punjab Sales Tax on Services Act, 2012 (the “Act”). The most significant structural amendment is the shift from a positive list-based taxation model to a negative list regime.

Federal–Provincial Challenges undermining SIFC’s Investment Mandate

In this article, we analyze the constitutional and statutory framework governing the Special Investment Facilitation Council (SIFC), with particular focus on its mandate, legal authority, and practical limitations in facilitating investment across federal and provincial jurisdictions. The analysis evaluates whether the existing structure of SIFC is capable of delivering effective single window facilitation, or whether constitutional constraints continue to undermine investor confidence and coordinated economic development in Pakistan.

Finance Act 2025 and the operation of change in law clauses

The Finance Act 2025 has revised the rate of withholding tax on services under section 153(1)(b) of the Income Tax Ordinance, 2001. Although this is a fiscal amendment, it has practical implications for long-term commercial agreements, particularly in the power and infrastructure sectors where Change in Law provisions are an essential part of contractual risk allocation. The Finance Act provides a useful example of how such provisions are applied in practice.

From London to Lahore: arbitration trends shaping UK-Pakistan disputes (Part I of III)

This first article in a three-part series considers recent decisions by the English courts on the enforcement of arbitral awards from Pakistan. Produced in collaboration with leading Pakistan law firm, ABS & Co, it examines the volatile nature of the energy sector in Pakistan, highlighting the risks arising from the termination of Power Purchase Agreements (PPAs) with the Government of Pakistan or its state-owned enterprises, in a period where the country is transitioning towards solar power and the contractual terms (including Take-or-Pay clauses) are proving to be financially unsustainable.

ABS & Co drafts PCBDDA’s Procurement Regulations 2024

ABS & Co has drafted the Punjab Central Business District Development Authority (PCBDDA) Procurement Regulations 2024, marking a historic milestone in Pakistan’s public procurement landscape. These regulations, modelled on the UNCITRAL Model Law on Public Procurement, represent the first time that any public procurement agency has used UNCITRAL’s globally recognized model law as the foundation for its public procurement framework.

Maham Naweed joins ABS & Co’s Public International Law Practice

ABS & Co proudly announces the launch of its dedicated Public International Law Practice. This new venture, headed by Ahmer Bilal Soofi, assembles a team of preeminent legal practitioners and scholars with a passion for public international law and strategy. The practice will provide comprehensive legal services to clients navigating the complexities of the global legal landscape.

Taxes on real estate in Pakistan (2024 – 2025)

The table below illustrates the taxes that are imposed on properties for filers. We have made this table with the assumption that the parties are on the Active Taxpayers List and file their taxes on time.

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