Steel producers commend FBR for corporatisation of AOPs

ISLAMABAD: Pakistan Association of Large Steel Producers commended the proactive support of the Federal Board of Revenue (FBR) authorities for resolving the difficulties for corporatization of the Association of Persons (AOPs) in the steel sector.

In a letter addressed to the Member of Strategic Transformation, Dr. Hamid Ateeq Sarwar, the PALSP commended the FBR for commendable support in ensuring swift and smooth transition for steel sector AOPs. PALSP also appreciates FBR’s ongoing initiatives aimed at documenting, digitizing, and corporatizing the steel industry.

Steel industry faced immense stress due to the abrupt announcement of the Section 46A amendment in Budget 2026-27, which was introduced without prior stakeholder consultation. Enacted on June 12, 2026, the law mandated that all non-corporate entities transition into corporate structures by July 1,2026. This tight 18-day time span posed a severe challenge, given that converting a non-corporate business into a registered company typically takes between six and eight months.

However, with the active support and facilitation of the FBR, a viable resolution is now underway.

Following the implementation of the amendment, PALSP approached the Minister of State for Finance, Bilal Azhar Kayani, Member of Strategic Transformation, Dr. Hamid Ateeq Sarwar and the SECP Chairman, Dr. Kabir Ahmed Sidhu, to seek facilitation and ensure a seamless corporate transition.

Responding to PALSP’s concerns, the Minister of State for Finance directed the SECP chairman to establish a dedicated facilitation desk to ensure swift and timely processing of incorporation and corporate conversion applications.

The PALSP commended the joint initiative by the FBR and the SECP to host an exclusive awareness webinar. This session is specifically designed to directly facilitatethe steel sector and ensure a transparent, efficient conversion process from AOPs to corporate entities.

Copyright Business Recorder, 2026