Terms of Reference

Task Background

Revenue Mobilisation, Investment and Trade (REMIT) programme is a technical assistance programme funded by the Foreign, Commonwealth & Development Office (FCDO), United Kingdom to support Pakistan in implementing strategic reforms in the realm of economic development, trade, investment and revenue mobilisation. 

Pakistan’s investment climate continues to be constrained by burdensome and non-transparent regulatory practices and procedures. These practices increase the cost of doing business and distort fair competition, enabling non-compliant firms to extract rents at the expense of those that adhere to regulatory requirements. This challenge is particularly pronounced for foreign companies and multinational corporations (MNCs), which are generally bound by stringent compliance standards imposed by their parent organizations. A case in point is the pharmaceutical sector, where MNCs incurred substantial losses due to price control mechanisms that allowed non-compliant firms to profit from the sale of counterfeit medicines. Addressing such regulatory distortions has already demonstrated significant positive impacts on sectoral growth.

In response, REMIT is supporting the Board of Investment, under directives from the Prime Minister, to identify, streamline, and reform regulations that hinder business activity and deter investment. The overarching objective is to generate economic gains equivalent to 2–3% of GDP. To date, two comprehensive reform packages have been developed with an estimated economic impact of PKR 170 billion covering all federal-level RLCOs and proposed amendments to the Companies Act. A Special Cabinet Committee on Regulatory Reforms has been constituted to expedite the approval and implementation of these reforms.

The forthcoming reform package will further broaden the scope, incorporating areas of specific relevance to foreign companies and MNCs. Given that their operational models differ significantly from domestic firms, it is essential to examine regulatory challenges from their perspective and design targeted reforms to address their unique constraints.

While the broader regulatory guillotine approach is being implemented to streamline business regulations, it may overlook critical issues that extend beyond formal legislation or are not traditionally classified as regulatory in nature. These include systemic constraints in areas such as foreign exchange controls, competition policy, market entry processes, and other administrative or procedural hurdles that can significantly impact investor confidence and operational viability. To ensure a comprehensive reform agenda, it is essential to adopt a fully vertical approach—one that goes beyond statutory regulations to identify and address these non-regulatory yet binding constraints. A more targeted and nuanced strategy is therefore required to pinpoint specific impediments to investment and leverage the current reform momentum to unlock high-impact enablers for both domestic and international investors.

 Objectives of the Assignment 

The overall objective of the assignment is to engage with the UK and other international investors in Pakistan. To remain directed, the assignment will focus on the following sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, professional and business services, agriculture, and logistics. These sectors have excellent potential for growth in Pakistan and offer high-return investment partnership opportunities.

Scope

The scope involves identification and design of reforms through regulatory streamlining and other most binding issues faced by foreign firms in the opportunity sectors discussed above.  The areas of reform may cover, but are not limited to, harmonisation of standards and mutual recognition, export controls and processes, price controls (including essential medicines), movement of people across borders, enforcement of IPR, FX flows and management, and market entry for international firms. To deliver the scope, the following minimum set of activities will be required:  

• Review of literature by OICCI and other research and analytical studies identifying the key issues faced by foreign firms in Pakistan and more generally in other similar context countries. Identify some examples of successful reforms in the most problematic areas. 

• Undertake meetings with REMIT, FCDO, and the UK commercial team to present the findings and take feedback on further reforming the scope and direction, including coverage of sectors and reform domains. 

• Establish contact with OICCI, UK Companies and other foreign firms in the agreed (as presented above) sectors and develop a mapping of existing businesses and sectors currently in Pakistan.

• Develop an assessment framework in line with the overall regulatory guillotine (RG) approach and based on impact assessment methodology. 

• Undertake assessment meetings and consultations with the identified investors to develop a deeper understanding of the issues and most binding constraints. This should specifically cover questions such as key operational challenges and pain points, key barriers to local sourcing and exporting to the UK and other important export destinations, viability of private sector interventions that could support growth (e.g. testing facilities, vocational training, certification support, climate actions and sustainability), and identify key constraints and actions to address the constraints.  

• Undertake a political economy analysis of FDI landscape and the Political Economy Analysis (PEA) of reforms required. 

• Undertake an independent assessment of the identified issues using the RG framework with additional adaptation as required based on the assessment. 

• Identify the nature of the reforms required and develop reform proposals that may include legal changes, procedural changes, or other changes that are required for implementation.

• Support BOI in developing decision memos on the identified reforms for presentation to the Cabinet Committee on Regulatory Reforms (CCoRR).   

Brief Description of Activities

• Develop an Inception report with full literature review.

• Conduct meetings with REMIT, BOI, FCDO and FCO Commercial team to agree on the exact scope and sectors.

• Engagement with the OICCI and the targeted foreign firms, including the UK firms. In case, foreign forms in the selected sector are not available, proactively speak to firms in the UK who may be interested in these sectors and expanding globally.  

• Develop a clear list of reforms, and backlink reforms to regulations, legislations, and procedures. Develop clear reforms to address the constraints. 

• Support BOI in presenting the reforms as part of the upcoming reform packages.

Key deliverables and timelines

Qualifications and Experience 

The selected firm should have the following capabilities:

• Proven track record of undertaking private sector development research and producing analysis for reforms in different legal and regulatory domains. Prior experience of applying guillotine approach to reforms or similar frameworks is highly desirable.

• The firm should present a team with expertise in private sector engagement, legal expertise, and understanding of regulatory documents and procedures.

• In-depth understanding of FDI-related challenges, investor perception studies, and economic governance. Familiarity with regulatory bottlenecks in areas like IPR enforcement, FX controls, export regulations, standards harmonization, and labor mobility.

• Experience working with private sector firms, ideally foreign investors, in sectors such as pharmaceuticals, energy, manufacturing, or services.

• The expertise should include an understanding of technical areas like fair competition, export procedures and capacity to conduct political economy analyses.

• Local representation or demonstrated capacity to work effectively in Pakistan’s institutional and regulatory context.

• At least 5 years of operational expertise with 5 relevant pieces of work as per the TORS.

1. Instructions to Bidders

Bidders should examine all Instructions, Terms and Conditions as given in the RFP. Failure to furnish information required in the RFP or submission of Bids not substantially responsive or viable in every respect will be at the Bidder’s risk and may result in rejection of the bids. Bidders should strictly submit the Bid as specified in the RFP, failing which the bids will be held as non-responsive and will be rejected. 

Bids shall compromise a single package containing two folders: 

1. Technical Proposal  

2. Financial Proposal 

Bidders should send soft copies of the Technical and Financial Proposal to the following address: 

Soft copies to be sent to: [email protected]

Proposal Weightings 

1. Technical Proposal 

2. Financial Proposal 

Prospective firms must be legally registered under the laws of the country in which they are organized and possess all licenses, permits and government approvals necessary for performance of the work. 

2. Proposal Terms

1. Prospective Firms’ Understanding of the Solicitation

Prospective contractors are responsible for understanding the solicitation in its entirety and each of its elements and should make inquiries to ASI as necessary to ensure such understanding. ASI reserves the right to disqualify any prospective vendor that it determines, at its sole discretion, does not understand the solicitation or any of its elements. Such disqualification shall be at no fault, cost, or liability whatsoever to ASI.

2. Information from ASI

All information provided by ASI in this solicitation is subject to change at any time. ASI makes no certification as to the accuracy of any item and is not responsible or liable for any use of or reliance on the information or for any claims asserted therefrom.

3. Communication

All communications related to the RFP must be in writing via email to the above-mentioned point of contact. 

1. Formal Communications shall include, but are not limited to the following:

• Questions concerning this solicitation must be submitted in writing to the contact person mentioned above. 

• Errors and omissions in this solicitation, as well as enhancements. Prospective firms should notify ASI of any discrepancies, errors, or omissions that may exist within this solicitation. Prospective vendors should recommend to ASI any enhancements to the work described in the solicitation which might be in ASI’ best interests.

• Inquiries about technical interpretations must be directly asked from contact person (Bilal Hassan).

2. Addenda: ASI will make a good-faith effort to provide a written response to the questions or requests for clarifications in the form of written responses.

3. Posting Online: Copy of this solicitation, will be available online at:  www.BrightSpyre.com.

4. Non-Disclosure Agreement

ASI reserves the right to require the prospective firms to enter into a non-disclosure agreement.

5. No Collusion

Collusion is strictly prohibited. Collusion is defined as an agreement or compact, written or oral, between two or more parties with the goal of limiting fair and open competition by deceiving, misleading, or defrauding a third party.

6. Companies Owned or Controlled by Government

The prospective vendor must disclose in writing with its Response if a government, its agents, or agencies, have an ownership or managerial interest in the company. Failure to disclose a government ownership of managerial interest in the company will result in the prospective contractor’s offer being removed from consideration.

7. Subcontracting

The prospective contractor must disclose in writing with its Response any subcontracting that will take place under an award. Failure to disclose subcontracting relationships will result in the prospective contractor’s offer being removed from consideration. (if permitted by the solicitation)

8. Costs

The solicitation does not obligate ASI to pay for any costs, of any kind whatsoever, which may be incurred by a prospective contractor/vendor or third parties, in connection with the Response.

9. Intellectual Property

Prospective vendors may not use any intellectual property of ASI including, but not limited to, all logos, trademarks, or trade names of ASI, at any time without the prior written approval of ASI.

10.  Prospective Contractors’ Responses

All accepted Responses shall become the property of ASI and will not be returned.

11.  Partial Awarding

ASI reserves the right to accept all or part of the Response when awarding a contract.

12.  No Liability

ASI reserves the right to accept or reject any Response or to stop the procurement process at any time, without assigning any reason or liability. ASI shall not be liable to any prospective contractor, person, or entity for any losses, expenses, costs, claims, or damages of any kind.