Islamabad | ReNews Pakistan

The Securities and Exchange Commission of Pakistan (SECP) has revised the eligibility criteria for audit firms appointed by financial institutions and other regulated entities, introducing a revised list of approved auditors based on the size, assets and nature of financial institutions.

The commission issued Circular No. 24 of 2026, partially amending Circular No. 7 of 2026. The revised framework covers entities regulated under several laws, including the Securities Act, 2015, Futures Market Act, 2016, Insurance Ordinance, 2000, and Companies Act, 2017.

According to the circular, the revised eligibility criteria for the appointment of auditors by lending non-banking finance companies (NBFCs) will apply to financial years beginning on or after January 1, 2027.

Under the revised framework, the SECP has identified a first category of approved audit firms eligible to audit major financial institutions, including securities exchanges, futures exchanges, clearing houses, depository companies and securities brokers holding trading and clearing category licences.

The same category applies to asset management companies and pension fund managers with assets under management of Rs 50 billion or more. It also covers deposit-taking lending NBFCs and non-deposit-taking lending NBFCs with assets of Rs 1 billion or more.

Modarabas with assets of Rs 1 billion or more, along with collective investment schemes, voluntary pension schemes and real estate investment trusts (REITs) having assets of Rs 10 billion or more, are also covered under the first category.

Insurance, reinsurance and takaful operators with total assets exceeding Rs 10 billion, collateral management companies, credit rating companies and professional clearing members are also required to appoint auditors from this category.

The approved audit firms include A.F. Ferguson & Co., Baker Tilly Mehmood Idrees Qamar, BDO Ebrahim & Co., Crowe Hussain Chaudhury & Co., EY Ford Rhodes, Grant Thornton Anjum Rahman, Ilyas Saeed & Co., KPMG Taseer Hadi & Co., Kreston Hyder Bhimji & Co., Muniff Ziauddin & Co., Nasir Javaid Maqsood Imran, Parker Russell A.J.S., Rahman Sarfaraz Rahim Iqbal Rafiq, Reanda Haroon Zakaria Aamir Salman Rizwan & Co., Riaz Ahmad & Co., Rizwan & Co., RSM Awais Hyder Liaquat Nauman, S.M. Suhail & Co., Yousuf Adil and UHY Hassan Naeem & Co.

The SECP has also established a separate category for smaller regulated entities, including securities brokers holding trading and self-clearing category licences, asset management companies, pension fund managers and relevant NBFCs with assets under management below Rs 50 billion.

The revised framework differentiates financial institutions according to their asset size and regulatory classification, requiring them to appoint audit firms that meet the eligibility criteria applicable to their respective categories.

The changes establish a revised framework for auditor appointments across Pakistan's regulated financial sector, including non-banking lenders, investment management companies, insurance operators and real estate investment trusts

Islamabad | ReNews Pakistan

The National Electric Power Regulatory Authority (NEPRA) has proposed a new regulatory framework allowing federal and provincial governments to establish standalone electricity systems in selected areas where conventional distribution networks face persistently high losses, poor bill recovery, inadequate service quality or economically unsustainable operating costs.

The proposed National Electric Power Regulatory Authority Standalone Electric Power System (Pilot Projects) Regulations, 2026, aim to introduce alternative electricity supply arrangements independent of the national or provincial power grid.

NEPRA has released the draft regulations for public consultation, inviting government institutions, electricity consumers and other stakeholders to submit their comments and recommendations to the regulator's registrar within 30 days of publication.

Under the proposed framework, standalone electricity systems may include power generation facilities, energy storage equipment and associated electrical infrastructure. However, these systems would operate without any direct or indirect connection to the national or provincial electricity grid.

The initiative is intended for areas where traditional electricity distribution arrangements have become financially or operationally difficult to maintain because of high distribution losses, poor revenue recovery, inadequate services or the high cost of maintaining conventional networks.

The draft regulations provide that either the federal government or a provincial government would act as the sponsoring authority for an alternative electricity supply scheme.

With the consent of the relevant distribution company, the sponsoring government could notify a designated area for the establishment of a standalone electricity system.

Following notification, the designated area would be excluded from the licensed service territory of the existing distribution company and the relevant supplier of last resort.

The proposed regulations would initially allow a maximum of two pilot projects for each distribution licensee. However, NEPRA could approve additional projects upon a request from the sponsoring government.

Each proposed scheme would be required to provide detailed information about its geographical coverage, technology, implementation schedule, participating institutions, costs, safety arrangements and expected public benefits.

The framework also places emphasis on consumer protection and service quality.

Implementing agencies would be required to establish minimum service standards covering electricity availability, supply capacity, fault rectification, equipment replacement timelines and consumer complaint resolution.

Prior consultation with affected consumers and advance notification would also be mandatory. The schemes would need to address arrangements for providing electricity to future consumers within the designated areas.

According to the draft, the federal or relevant provincial government would finance standalone electricity systems either fully or partially, depending on the approved cost-sharing arrangements.

Islamabad | ReNews Pakistan

The federal government has introduced a bill in the National Assembly seeking to merge the Privatisation Commission and the Public-Private Partnership Authority (P3A) into a single institution responsible for privatisation transactions and public-private partnership projects.

Under the proposed legislation, the new Privatisation and Public Private Partnership Commission (PPPPC) would oversee the sale and transfer of state assets and facilitate, assess and monitor private sector participation in public infrastructure and services.

The bill seeks to amend the Privatisation Commission Ordinance 2000 and repeal the Public Private Partnership Authority Act 2017. If enacted, the existing P3A would be dissolved and its responsibilities transferred to the newly constituted commission.

According to the government, the proposed merger is intended to eliminate overlapping institutional functions, streamline decision making and improve the efficiency of privatisation and public private partnership transactions.

The proposed commission would be headed by incumbent Privatisation Commission Chairman Muhammad Ali. Its board would have a majority of private-sector members, including at least two women, with fixed terms and specified conditions for disqualification and removal.

The legislation proposes placing four funds under the commission's administration: the privatisation fund, public contribution fund, viability gap fund and PPP project development fund.

These funds could receive allocations from the federal budget, international financial institutions, investment income and other permissible sources. They would be non-lapsable, allowing unspent balances to remain available beyond the financial year.

The public contribution fund would help meet government obligations associated with PPP projects, including land acquisition, site handover and the provision of rights of way.

The bill also proposes a federal pipeline of PPP projects, a formal approval mechanism, a risk management unit and dedicated committees to supervise project transactions.

Under the proposed framework, the commission could require government agencies to provide complete details of existing, planned and proposed projects within 15 days, including projects not formally classified as PPP initiatives.

The proposed law provides that agreements between public and private partners would be treated as public documents. Interested individuals could obtain copies, subject to applicable laws. However, the government, commission and relevant agencies would not be liable for private-party claims involving risks not expressly covered by a PPP agreement.

Another significant provision seeks legal and investigation immunity for serving and former chairmen, secretaries, board members, officials and consultants in relation to actions or omissions undertaken in good faith. The bill also proposes the use of public funds to defend proceedings covered by these protections.

Existing contracts executed by the P3A would transfer to the new commission without adversely affecting the contractual position of private parties.

The draft legislation further provides that employees, advisers and consultants of the existing authority would be retained for up to six months or until the expiry of their respective contracts, whichever occurs first, on terms no less favourable than their existing conditions.

If approved, the legislation could significantly reshape the federal government's approach to privatisation, infrastructure investment and public-private partnership management. Its implementation, however, remains subject to completion of the legislative process.