ISLAMABAD: The Pakistan Association of Large Steel Producers (PALSP) has appreciated the support extended by the Federal Board of Revenue (FBR) for addressing challenges faced by Association of Persons (AOPs) in the steel sector during the transition to corporate structures.
In a letter to FBR Member of Strategic Transformation Dr Hamid Ateeq Sarwar, the PALSP acknowledged the tax authority’s efforts in facilitating a smooth transition for steel sector AOPs.
The association also welcomed the FBR’s initiatives to document, digitise and corporatise the steel industry. It said the sector faced significant challenges following the introduction of an amendment to Section 46A in the Budget 2026-27, which was announced without any consultations with stakeholders.
Enacted on June 12, 2026, the amendment required all non-corporate entities to convert into corporate structures by July 1, 2026. The association said the 18-day deadline posed a major challenge, as converting a non-corporate business into a registered company typically takes six to eight months.
The PALSP said that following the amendment, it approached Minister of State for Finance Bilal Azhar Kayani, FBR Member of Strategic Transformation Dr Hamid Ateeq Sarwar and Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmed Sidhu to seek facilitation for a smoother transition.
In response to the association’s concerns, the minister of state for finance directed the SECP chairperson to establish a dedicated facilitation desk to expedite the processing of incorporation and corporate conversion applications.
The PALSP also appreciated the joint initiative by the FBR and SECP to organise an awareness webinar for the steel sector, aimed at facilitating the conversion process from AOPs to corporate entities.
