The cabinet rejected a plan to provide binding instructions about business dealings with other countries and instead opted to grant foreign investors immunity by prohibiting judicial jurisdictions under the Inter-Governmental Commercial Transactions Act 2022. According to sources, cabinet members have raised misgivings about Clause 5 of the draught measure, which deals with the competence to issue binding directives. They claimed that the clause violated the spirit of the 18th Amendment to the Constitution and was vulnerable to abuse since it harmed provincial authority. In a recent cabinet meeting presided over by Prime Minister Shehbaz Sharif, the minister of law and justice said that the provision had been “restricted invocation,” only to the extent of certain transactions to help foreign investors and avoid delays in project execution. Cabinet members, on the other hand, believed that subclause 2 and the term “binding” in Clause 5 should be removed. Some cabinet members argued that insertion of Clause 8 of the draught law addressing bar on court jurisdiction was pointless since it would not prevent superior courts from taking cognizance under their original jurisdiction. The law minister noted that it was a normal provision seen in many other statutes that served to reduce frivolous lawsuits. Moreover, comparable provisions already exist in the regulations governing Special Economic Zones (SEZ) and Special Technology Zones (STZ). He argued that its inclusion was vital to give foreign investors with safety and comfort. While the cabinet members agreed that foreign investor immunity was vital, they thought that Section 8 should be reconsidered. While discussing the proposed legislation, the law minister advised that the observation be taken up by the National Assembly standing committee, which included members from all legislative parties. This was agreed upon. The Law and Justice Division presented the cabinet with a summary titled “Inter-Governmental Commercial Transactions Act 2022.” It approved the motion with the condition that the term “binding” in the marginal header and statement “(1)” in Clause 5 be eliminated, as well as Clause 5 sub-clause (2). The Law and Justice Division informed the cabinet that there was no law in place to authorise, negotiate, or supervise inter-governmental agreements between the government of Pakistan and the government of a foreign state for the purpose of engaging into business partnerships. As a consequence, the cabinet established a sub-committee to draught a statutory framework for inter-governmental commercial transactions at its meeting on July 4, 2022. The subcommittee completed a draught ordinance named “Inter-governmental Commercial Transactions Ordinance 2022” and submitted its report to the cabinet for approval. In its meeting on July 15, 2022, the cabinet examined the report and gave its preliminary approval to the proposed ordinance. Later, the Cabinet Division submitted a summary for the Cabinet Committee on Legislative Changes (CCLC), and the CCLC adopted a draught at its meeting on July 20, 2022. It was later confirmed by the cabinet. On July 22, the Cabinet Division launched a summary for the publication of the draught ordinance, but the prime minister requested that instead of the ordinance, a bill be submitted in the National Assembly. As a result, the draught ordinance was transformed into a bill for consideration in a National Assembly session. The federal government will form a cabinet committee on inter-governmental business transactions, comprised of cabinet members, under the proposed bill. The major duty of the committee will be to authorise discussions and the execution of intergovernmental agreements. It will allow both nations’ state-owned firms to create a commercial venture in Pakistan or abroad. The proposed measure must be passed in order to entice and encourage other nations to establish economic and business ties with Pakistan. The Law and Justice Division encouraged that the checked and improved draft named “Inter-governmental Commercial Transactions Act 2022” be absolved from additional scrutiny by the CCLC on the grounds that its law had recently been viewed as by the discussion and might be endorsed by the government bureau as per its command under Rules of Business 1973 Rule 16(a) read with Rule 27.