Pakistan's national assembly has passed legislation limiting how long lawmakers can be disqualified from office, a state spokesman said on Tuesday, in a move that could pave the way for exiled former prime minister Nawaz Sharif's return to politics.
Mr Sharif served as Pakistan's prime minister three times – the last before being ousted over graft allegations in 2017.
The Supreme Court barred him from politics for life and he was later sentenced to seven years in jail.
In 2019 he was granted medical bail and flew to Britain, where he has remained ever since, continuing to steer the family-run Pakistan Muslim League-Nawaz party from behind the scenes.
His brother Shehbaz Sharif became prime minister last year with the country due to hold fresh general elections by October.
On Tuesday, a government spokesman said the acting president had signed into law an amendment which says courts can only disqualify parliamentarians “for a period not exceeding five years”.
The spokesman said senate chairman Sadiq Sanjrani served as acting president signing the bill on Monday, in the absence of President Arif Alvi who is abroad on the Hajj pilgrimage.
“The ruling PML-N and its coalition partners want to bring Nawaz Sharif back,” political analyst Hasan Askari told AFP. “The bill has been passed to achieve this objective.”
“Nawaz Sharif will be the main campaigner for PML-N in the next election,” he added. “His return will be very helpful for the party politically, but it's not clear whether he himself will contest the election.”
Mr Sharif still faces the case which saw him sentenced during the tenure of his successor, Imran Khan, who won power pledging to undo the corruption which has historically plagued the country.
In Pakistan, legal cases which tangle politicians in opposition are regularly wound back once their party regains office.
Shehbaz ousted Mr Khan last April via a no-confidence vote. However, he is at the head of a tentative coalition of parties, while Mr Khan remains widely popular in the countdown to polling.
Mr Khan has been calling for snap elections, but his campaign has become bogged down in dozens of legal cases.
Last month he was briefly arrested on graft charges in Islamabad, sparking unrest during which supporters of his Pakistan Tehreek-e-Insaf party poured on to the streets and clashed with police.
In the aftermath of his release following three days in custody, PTI has been targeted by a crackdown with thousands of arrests, reports of intimidation and muzzling of the press.
Mr Khan says his party is being suppressed by the government, led by PML-N, and the powerful military establishment.
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Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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