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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.

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.

Enforcement of Foreign Judgments in Pakistan

In Pakistan, the execution of foreign judgments is regulated under the Code of Civil Procedure, 1908 (“CPC”). The CPC provides three different options for the enforcement and execution of foreign judgments in Pakistan. This includes (1) direct execution under section 44-A of the CPC where the country rendering the judgment is recognized as a “reciprocating territory”, (2) filing a separate suit in Pakistan on the basis of a foreign judgment under section 13 of the CPC by using the foreign judgment as an independent cause of action; and (3) filing a separate suit on the original cause of action based on the principle that till decree is not satisfied, the cause of action remains intact.

IHC declares section 7E of Income Tax Ordinance 2001 ultra vires

Islamabad High Court strikes down section 7-E of Income Tax Ordinance 2001.

Our team consisting of Sabila Daraz Khan, Aiema Asrar and Fatima Midrar successfully brought a challenge to the vires of the section 7E of the Income Tax Ordinance 2001. ABS & Co’s team represented private clients in several petitions before the Islamabad High Court where section 7E of the Income Tax Ordinance had been challenged on the basis that it is ultra vires to the Constitution of Islamic Republic of Pakistan, 1973.

Legal Memo on Pakistan’s Elections Act 2017 and Election Petitions

The Pakistan Elections Act 2017 is an important piece of legislation that governs the conduct of elections in Pakistan. It was passed by the Parliament of Pakistan in 2017. The Act repealed several previous electoral laws, including the Representation of the People Act, 1976, and the Conduct of General Elections Order, 2002. The main purpose of the Act is to ensure the transparency, fairness, and credibility of the electoral process in the country. The Act was enacted to streamline the electoral process in Pakistan and to address some of the shortcomings in the previous electoral framework. The Pakistan Elections Act 2017 introduced several new provisions and amendments, including the use of biometric verification for voter identification, the appointment of a caretaker government to oversee the electoral process, and the creation of an Election Commission to ensure the impartiality of the electoral process.

Sale and Purchase of Real Estate in Pakistan

The principal law governing buying and selling of immovable property, or land, in Pakistan is the Transfer of Property Act, 1882 (the “Act”). However, some rights in immovable property may be acquired, under other laws, through easements and licenses. Land may be acquired, though only for public purposes or, for enterprises, in public interest, through compulsory acquisition under various Land Acquisition laws.

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