Govt forms panel to resolve steel sector registration issues

ISLAMABAD: The government on Wednesday decided to constitute a “Troubleshooting Committee” to immediately resolve corporate registration issues of steel sector to facilitate the conversion of Associations of Persons (AOPs) into companies within the steel sector under Finance Act 2026.

The decision has been taken during the joint stakeholder webinar held on Wednesday, organized by the Securities and Exchange Commission of Pakistan (SECP), in collaboration with the Federal Board of Revenue (FBR) to discuss impact of Finance Act 2026 on steel sector.

The webinar forms part of the SECP’s ongoing efforts to support business formalization by providing stakeholders with practical guidance on the legal, regulatory, and tax framework governing corporatization.

The session also provided an opportunity for participants to engage directly with officials from the SECP and the FBR and seek clarification on the conversion process.

READ MORE: Steel producers commend FBR for corporatisation of AOPs

During the joint stakeholder webinar, it was decided that the committee will include a senior FBR official, SECP representatives, Customs Chief, Distribution companies (DISCOs) representatives and Pakistan Association of Large Steel Producers (PALSP) as a permanent stakeholder.

FBR Member Strategic transformation clearly outlined that there will be no technical hurdles exist; alignment is only needed to maintain existing partnership ratios without violating rules.

It was agreed that the conversion of Associations of Persons (AOPs) into companies within steel sector is primarily necessary for entities heavily impacted by withholding taxes. The participants agreed that the existing bank accounts, credit facilities, will remain unchanged. System back-ends will update CIF profiles from “partners” to “directors” using standard SECP documents.

The participants also agreed that a “Reverse Merger” framework allowing new Private Limited companies to absorb sole proprietorships to retain historical records and secure Category-A eligibility.

They recommended issuing new NTN/STRNs while digitally linking legacy tax histories and proposed a 3–6 months grace period (via SRO) to allow operation under existing sales tax registration numbers (STRNs) to clear carry-forwards and input tax before final transition.

The FBR may issue a circular allowing input tax claims on utility bills during the transition, even if the name change is not finalized.

A meeting will be held with utility providers to mandate a free or minimal-fee title transfer within a 5-day fast-track window, they added.

Copyright Business Recorder, 2026