Pakistan's Federal Board of Revenue has published the Income Tax (Amendment) Ordinance 2022, which was promulgated on 2 March 2022 with immediate effect. One of the main measures of the ordinance provides a loss carryforward incentive for companies that acquire a majority of the share capital in a "sick industrial unit" through a scheme of amalgamation or merger. This includes that the acquiring company will be entitled to set off the latest tax year and carried forward losses of the acquired company, excluding capital losses, for a period of three years if the following conditions are met: there is continued...