Punjab Waives Stamp Duty on Mergers
Analysis based on 7 articles · First reported Feb 21, 2026 · Last updated Feb 22, 2026
The waiver of stamp duty by the Pakistan===Government of Punjab is expected to positively impact the financial markets by reducing transaction costs for corporate mergers and restructuring, thereby encouraging investment and business growth. This regulatory change simplifies procedures and aligns Punjab with other regions like the Pakistan===Islamabad Capital Territory, making the market more attractive for corporate activity.
The Pakistan===Government of Punjab has issued a notification to completely waive stamp duty on property transfers arising from corporate mergers and schemes of arrangement. This decision follows a judgment by the Pakistan===Lahore High Court's Rawalpindi Bench, which examined the legality of levying stamp duty on such transactions. The Pakistan===Securities and Exchange Commission of Pakistan (SECP) played a key role in the discussions, highlighting that similar exemptions already exist for companies in the Pakistan===Islamabad Capital Territory under the Companies Act, 2017. The waiver is expected to facilitate corporate restructuring, reduce costs, and promote investment and business growth in Punjab by resolving the conflict between federal company law and provincial stamp duty jurisdiction.
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