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.

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.

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 is pleased to announce that Bakhtawar Bilal Soofi, Partner and Head of the firm’s Construction & Engineering Practice, has been appointed as a Dispute Board (DB) Member on the Greater Karachi Bulk Water Supply Scheme – K-IV 260 MGD (Phase I), one of Pakistan’s largest and most strategically significant urban infrastructure projects.

ABS & Co has been retained by Guarantee Engineers to represent the company in a high-value contractual dispute related to the Establishment of the Tertiary Care Hospital, Nishtar-II, Multan - a flagship public sector project executed under the aegis of the Infrastructure Development Authority of Punjab (IDAP).

ABS & Co has been engaged by Zahir Khan & Brothers (ZKB) - a top-tier construction company registered with the Pakistan Engineering Council as a No Limit contractor (CA-125) - in a high-stakes matter relating to the release of its retention money kept by the Employer against the Rawalpindi-Islamabad Metro Bus Project.

ABS & Co is pleased to announce that it has successfully secured an award of Pakistan Rupees 721 million for Mughals Pakistan (Pvt.) Ltd.  against Pakistan Real Estate Investment & Management Company (PRIMACO), a state-owned company operating under the administrative control of the Employees Old-Age Benefits Institution (EOBI). The arbitration arose out of a FIDIC based construction contract executed between the parties for EOBI mall / mixed use development project.

ABS & Co is pleased to announce its appointment as counsel to Guarantee Engineers in a major contractual dispute concerning the Recep Tayyip Erdogan Hospital Expansion Project, Muzaffargarh - a high-profile healthcare infrastructure project developed under the Infrastructure Development Authority of Punjab (IDAP).

ABS & Co is proud to announce a major success representing Habib Construction Services Limited in an arbitration against the Lahore Development Authority (LDA) concerning the Lahore Orange Line Metro Train Project (Package-I), one of the largest infrastructure projects in Pakistan.

We advised Stylers Int’l Limited (STYLERS) on its rights offering ABS & Co advised Stylers in connection with its rights offer on the Pakistan Stock Exchange (PSX) through which a sum in excess of PKR 2 billion was raised by the company. The offering consisted of 53,540,353 right shares at an exercise price of PKR 43.50 per share. Meezan Bank and Topline Securities acted as the underwriters to the issue.

ABS & Co is proud to have successfully represented Power Construction Corporation of China Limited (PCCCL) in a significant contractual dispute arising out of the Tarbela 5th Extension Hydropower Project, co-financed by the World Bank and AIIB.

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.

We are pleased to share that Manahil Gilani, Anza Mahmood and Khawaja Saram have been promoted to Senior Associates. Manahil has been part of the firm for almost four years having graduated from the Shaikh Ahmad Hassan School Of Law, LUMS in 2021. Anza did his law from the University of London in 2020 and re-joined the firm after being called to the Bar at Lincoln’s Inn in 2024. Saram graduated from the University of London and completed his LLM from the University of Law in 2020 before joining ABS in same year.

Ahmer Bilal Soofi, Founding and Managing Partner of ABS & Co, has been re-elected to the International Chamber of Commerce (ICC) International Court of Arbitration. Ahmer will serve for a three-year term from 2024 to 2027.

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.

We are acting as claims consultant to Power Construction Corporation of China in relation to the Tarbela 5 Hydropower Project. ABS & Co has been engaged by the Power Construction Corporation of China to act as its claims consultant on the $350 million Tarbela 5 Hydropower Project. The appointment cements ABS & Co’s position as the leading construction claims consultancy firm in Pakistan that specializes in contractor-side advisory.