Yousaf Amanat & Associates

The Firm was recently engaged by Serioplast Italy a global manufacturing company for plastics. The Firm advised the company on a variety of matters including employment law, tax, matters concerning the State Bank of Pakistan and Customs issue. The fact that the Firm was able to advise on matters straying from its forte of employment law shows how the various practices of the Firm have grown. The employment law matter included conducting the investigation of an upper management employee, gathering evidence against the employee and preparing documentation for the termination of the employee. The tax part of the advice focused on review of tax returns for filing of refunds. The matter concerning the State Bank of Pakistan centered on advice regarding repatriation of foreign funds under the prudential regulations and finally the customs issue involved a review of relevant import and export laws relating to export of machinery out of Pakistan.

INTRODUCTION The Prevention of Electronic Crimes Act 2016 or more commonly known as the PECA presently appears to be Pakistan’s answer to all things related to the internet and cyber space. In an era where digital technology permeates every aspect of life, the rise of cybercrime presents a significant challenge for governments worldwide. Pakistan addressed this growing concern by enacting the PECA. The law was introduced to provide a legal framework for combating cyber threats, protecting citizens online, and regulating digital space. PECA was designed to tackle a wide range of cyber-related offenses. These include: Cyberstalking and harassment Hacking and unauthorized access to data Cyber terrorism and hate speech Child pornography Online impersonation and defamation Electronic fraud and identity theft  DATA PROTECTION NOT COVERED UNDER PECA PECA is primarily a criminal law — it focuses on punishing offenses like hacking, cyberstalking, or hate speech, rather than establishing comprehensive data protection standards. It lacks: A framework for data privacy rights. Obligations for data handlers (both public and private) to secure user data. Mechanisms for individuals to control how their data is collected, processed, or shared. Without proactive requirements, the law remains reactive — addressing breaches after they happen rather than preventing them. THE PERSONAL DATA PRORECTION BILL 2023 The Personal Data Protection Bill 2023 (PDPB) as opposed to the PECA is a regulatory law. PECA being a criminal law is a reactive law not a preventive law. Regulatory law works towards prevention rather than reaction and that is precisely why regulatory law as opposed to criminal law is better suited to governing data protection and preventing data breaches. PECA is more about punishing cybercrimes, while the PDPB is about regulating data use and protecting privacy. PECA often deals with offensive content and digital threats, whereas the PDPB is about rights, consent, and ethical data use. The PDPB focuses on: Creation of the data protection authority Concept of consent and the power to withdraw the same Data processing and localization Data breach notification Cross border data transfers Data Controllers CONCLUSION In an increasingly digital world, where personal information is constantly being collected, shared, and stored, the PDPB is a necessary and overdue step toward protecting the privacy and rights of Pakistani citizens. Without a clear legal framework, individuals remain vulnerable to data breaches, identity theft, unauthorized surveillance, and corporate misuse of their personal information. The bill not only empowers individuals with greater control over their data but also sets standards for how public and private entities must handle personal information responsibly. As digital economies grow and global data regulations tighten, Pakistan needs this legislation to build public trust, attract international investment, and safeguard its digital sovereignty. Properly implemented, this bill can lay the foundation for a secure, transparent, and rights-based digital future. While the Prevention of Electronic Crimes Act (PECA) addresses critical issues like cybercrime, online harassment, and digital offenses, it is not a comprehensive solution for data protection. PECA primarily focuses on punitive actions against cybercrimes and the regulation of online behavior, but it lacks the framework necessary to protect individual privacy and regulate the collection, processing, and storage of personal data. Unlike a data protection law, PECA does not offer citizens explicit rights over their personal data, such as the right to access, consent to, or request the deletion of their data. Furthermore, PECA does not establish clear obligations for organizations on how to handle sensitive data securely. As a result, while PECA is essential for ensuring online safety and preventing electronic crimes, it falls short of the detailed, privacy-centric protections needed in the digital age. Thus, a dedicated data protection law is critical to safeguard individuals' data privacy rights and ensure responsible data handling by both public and private entities.

The Prevention of Electronic Crimes Act 2016 (PECA) as it is more commonly known was Pakistan’s first attempt at curbing electronic crimes and cyber-crimes. The also contains provisions on data protection. Predominantly the PECA provides for criminal penalties for anyone found guilty of indulging in cyber-crimes.  In the past 5 years Pakistan has seen a surge in the use of social media platforms specially by the younger generation. It was inevitable that this use of social media would sooner rather than later be used for political reasons. Change in the government has seen a strong desire and infact also the implementation of a crackdown by the new government and security agencies in Pakistan on the abuse of social media. This crackdown has bene so strong that it has bordered on the banning of free speech. Banning of X in Pakistan, Meta being down, VPN use being restricted and generally social media being painted as negative tool are some of the effects of this crackdown. The Government and the security agencies in Pakistan has also repeatedly accused the wrongful use of social media platforms for being he reason for the spreading of fake and defamatory news. To further regulate the use of social media changes have now been made to the PECA. These changes which have been made into law by the passage of the Prevention of electronic Crimes Amendment Act 2025 have provided for more severe punishments for anyone found guilty of spreading fake news via the use of electronic means and by using a social media platform. For the first time the Government has created a social media protection and regulatory authority. This authority shall have the power to block any content or bring action against any social media platform which is found guilty of spreading news which causes religious or political resentment in Pakistan. A national cyber crimes investigations agency has also been established under the Act which is tasked with investigations pertaining to spreading of news causing political and religious unrest by the use of information systems. This agency has vast powers including the power to enter into a premises and seize information system(s), data, hard drive which may have been involved in the mis use of  electronic means. The promulgation of this law is unlike routine legislation which is enacted for the protections of rights of citizens. This law has been specifically drafted to counter unrest which the Government and the security agencies have been facing by the misuse of social media particularly by the younger generation and professionals well versed in the use of software and malware. Because this law has the backing of the Government and security agencies in Pakistan hence it can be stated that with certainty that the same will be enforced unequivocally. Workplaces which have not clearly provided for policies around the misuse of social media and electronic systems specifically with regard to the PECA and its changes  can become victims to an act of search and seizure by the national cyber crimes investigations agency.  Since the PECA is a law which entails criminal liability thus in such instances it may also be the case that the employer who is deemed to be the owner of the workplace from where the misuse of the electronic system originated be held personally liable. Clearly defined internet usage policies should be made as part of the employment contract. undertakings and indemnities need to be signed  need to be signed by the employees at the time of their employment which provide that they have been given detailed trainings on the use of office electronic equipment particularly on the use of the internet which is to be used for office use only  and that they shall not mis use any office equipment provided to them for their work and that they shall indemnify their employer in case any action is brought against the workplace as a result of their misuse of an electronic system. Blocking certain online sites within the office which are not required for office work would also be a good idea. In conclusion this may be one of the areas for regulations which is being ignored by companies working in Pakistan. Regulating the use of the internet at the workplace by way of clear policies and training and clearly separating the liability of the employer is important and companies should be doing this.   About the Author Mr. Yousaf Amanat is ranked for employment law and data protection by Legal 500, Chambers and Partners and GDR 100. www.yaa.com.pk  

The Firm recently advised he online DSP advertising platform. Quanticast combines cutting edge machine learning with human intellect to come up with unique online advertising solutions. Most Fortune 500 companies utilize Quanticast. In November 2024 the Firm was contacted by Dentons UK to advise Quanticast on its online marketing campaign of which Pakistan was also destined to be a part. The advise focused on the law surrounding data protection and advertising in Pakistan. Particularly with regard to data protection the advise also encompassed the role of GDPR-UK in the context of Pakistan’s data protection laws. The advise also included drafting of documents on permission for use of data by the end user.  

The Firm has been engaged by Chine Three Gorges Corporation to advise its hydel power project in Pakistan. The advise focuses on matters of labour law including advising the corporation on how best to handle its disputes being adjudicated by the office of the ombudsperson for disputes of the World Bank. The Firm has been chosen by the corporation based on its experience of handling projects by World Bank particularly in he field of Labour Law. The Firm will also be advising the corporation on Unions, workplace disputes and working conditions.  

The Prevention of the Electronic Crimes Act (Amendment) Act 2025 has been promulgated. Under the Act a social media regulatory authority is to be formed which will regulate social media platforms in Pakistan. The authority shall also proceed on complaints against social media platforms. The duty for censuring social media platforms and licensing social media platforms shall also rest with authority. The Act also calls for the formation of specialized social media tribunals for hearings against malicious use of social media. Spreading of false news has been made punishable with imprisonment of 03 years and a fine of up to PKR 2 million. Under the Act an investigation agency by the name of National Cyber Crime Investigation Agency (NCCIA) shall be formed for inquiry, investigation and prosecution under the Act.  

What are the 26th Constitutional Amendments and what they mean for investors and multinationals working in Pakistan, absolutely nothing!! Well not directly that is. In a nut shell this is a legislation for taking away the dictatorial powers of the judges which of late had to an extent hampered economic and political stability in Pakistan. The 26th Consti­tutional Amendment Bill, also known as the Constitutional Package, is legislation aimed at taking away the Supreme Court’s suo motu powers, setting the chief justice of Pakistan’s (CJP) term at three years, and empowering the prime minister to appoint the next CJP from among the three most senior SC judges. The way the amendments should impact a private investor is that it gives investors confidence who used to fear that their investment would end up being the target of an overtly ambitious Chief Justice. The term of the Chief Justice of the Supreme Court has been fixed for 03 years. Constitutional benches have been formed within the Supreme Court and the High Courts and so both these courts will have no excuses for ignoring hearing regular matters which again is good news in the sense that there will be no delays for companies involved in litigations. A commission will be formed under the amendments to oversee the working of judges both of the High Courts and Supreme Court.   For long Pakistan’s top courts have been misused. These amendments will go a long way in ensuring investor confidence and even political stability.  

On December 14th, 2022, Pakistan passed perhaps its most useful and important law regarding foreign investment so far. The law accords protection to “qualified investments”. Qualified investments have been defined as those investments which fall within First Schedule of the Act and to fall within the First Schedule of the Act the qualification is that investment should be at a minimum of USD 500 million. This is a good qualification. For investment to be USD 500 million or beyond you would as a foreign investor definitely want to protect the same. In a major progressive act, the law further provides that the qualified investment will continue to enjoy protection even if this law is repealed or amended unless the overriding law specifically provides otherwise.   EXEMPTIONS AND EASE OF DOING BUSINESS   Exemptions from: taxes, cesses and customs duties, labour laws such as the worker’s welfare fund.  Ease of dealing in foreign exchange. Secrecy in banking regulations as well as immunity from taxation authorities as to source of funding of accounts.   APPOINTMENT OF INVESTMENT OMBUDSMAN Creation of the office of an investment ombudsman for looking into complaints of investors under the Act. CONFLICT WITH OTHER LAWS  In case of conflict with other laws, the Act to prevail. REKO DIQ  The Reko Diq Project becomes the first qualified investment under the Act. On December 9th, 2022, the Supreme court of Pakistan declared an Agreement signed between the Government of Pakistan, Barrick Gold and Antofagasta PLC as legally binding. And I just cannot believe that I lived to see this day. It was exactly 09 years ago when I while sitting in the same Supreme Court of Pakistan witnessed the Chief Justice of Pakistan declare the mining lease and the efforts of Barrick and Antofagasta’s SPV TCC to acquire the mining lease as well as the Chagai Hills Joint Venture Agreement and with it BHP Billiton’s efforts as completely illegal. I and the entire legal team was crest fallen. For a year we had tried our best that this day should not come. We would later realize that having succeeded in managing to deflect all attacks by a very gung-ho Chief Justice to the international arbitration process was in fact our real victory. For the next 09 years Barrick and Antofagasta launched a brilliant legal strategy before the ICC and ICSID. They patiently went through the processes, the malicious news campaign launched against them in Pakistan, harassment of their employees in Pakistan and the unrealistic offer of negotiations from one government to the other. They prevailed. The project has been revived. The Supreme Court of Pakistan has ratified an Agreement between the Government of Pakistan and Barrick for the restart of the Project. Barrick is a 50% shareholder in the Project with the rest of the shareholding divided between Pakistan’s stated owned entities and the province of Baluchistan.   THE PROJECT This is a massive project and ushers the opening of the mining industry in Pakistan. The Tethyan Belt is rich beyond imagination in both copper and gold. The Reko Diq Project is estimated to last for a total of 40 years but the belt has numerous other exploration sites which can usher in many other Barricks and BHPs. The Reko Diq Project alone has the potential to yield its investors a whopping USD 11 billion. Tanjeel, next to the Reko Diq Project is another potential source for Copper and Gold. The untapped potential of the Tethyan Arc is very real.   WHAT WENT WRONG IN 2013 AND WHAT WENT RIGHT IN 2022 For a Project as massive as the Reko Diq Project you need the Government on your side. The military establishment which provides security to Projects in volatile areas such as Balochistan perhaps did not understand the magnitude of the Project. Misconceptions were created by the local media as well as the Government’s legal team that Barrick and Antofagasta would lose the arbitration and that in fact Pakistan processed the technical know how to operate the Project. For a country where this was to be the first mining project, it is beyond me how we believed that we possessed the technical know how to operate the Project. I think once the Government realized that neither were they going to win the legal battle nor did they possess the legal know how on operating the Project, everything and everyone else just basically fell into place. Because this is an article related to the law, I will stress on the fact that Barrick and Antofagasta followed the legal process to the T. From the various notices we sent to the Government under the Chagai Hills Joint Venture Agreement regarding the initiation of the dispute to patiently following the Arbitration process before ICSID and ICC, the companies demonstrated to the Government of Pakistan that should they be denied their legal right in the future too without just cause, the Government would lose. The creation of the Foreign Investment (Protection and Promotion) Bill, 2022 is a case in point. BHP Billiton back in 1996 had legally acquired concessions, the only difference between BHP and Barrick/Antofagasta was that the Government was not involved in an international Arbitration with BHP. The massive Arbitration Award has been the game changer.                                    THE LESSON The Lesson for investors: follow the legal process. Use international arbitration clauses in agreements. When the clause exists do not under any situation submit to the jurisdiction of the local court. The Lesson for the Government; let’s not mess things up this time. The Mining Industry will be the business game changer for Pakistan.