4 min read
Islamabad: The Senate Standing Committee on Finance and Revenue convened under the chairmanship of Senator Saleem Mandviwalla here at the Parliament House, addressing critical financial and trade issues, including tax reforms, money bills, and challenges faced by the customs department in managing border trade.
Chairman Saleem Mandviwalla highlighted the ongoing debate over bills labeled as “money bills, he said that The law brought so far has been referred to as money bills, and it is a matter of amending the law, to take measures against non filers He added, “The government informed us that the Speaker has declared it a money bill, but when I spoke to the Speaker of the National Assembly, he denied labeling anything as such.”
The committee also discussed the powers of the Senate in handling money bills, with Mandviwala emphasizing that while the Senate may consider such bills, it does not have the authority to vote on them. “According to the law, if there is a disagreement in the Senate regarding a bill’s status as a money bill, the Speaker of the National Assembly will make the final decision,” Mandviwala explained. Senator Shibli Faraz supported this view, suggesting that the opinion of the Law Ministry should be sought to clarify the matter.
The FBR Chairman also noted that banks had received an additional Rs 70 billion in taxes this year due to their failure to maintain the advance-to-deposit ratio limit by December 31.
Senator Shibli Faraz pointed out that in January 2025, Rs 440 billion had been returned to banks. “We are committed to increasing the tax on bank profits to support the government’s financial needs,” the Finance Minister remarked. “Banks must play their part in helping the government.”
The Finance Minister also responded on the issue of truck congestion at the Iran-Pakistan border, revealing that 600 trucks are currently stuck, causing major delays and unemployment in Balochistan. “Thousands of people have become unemployed due to these blockages,” Senator Manzoor Kakar said, urging the government to resolve the issue promptly.
Regarding trade between Pakistan and Iran, the committee examined the complexities of barter trade, which began in 2023. Customs officials pointed out that only Iranian-made products are allowed under the barter agreement, but traders have been importing luxury goods in Iran and then exporting them to Pakistan. “The SRO (Statutory Regulatory Order) governing this trade is too difficult to navigate, and it needs to be made more pragmatic,” stated Anusha Rehman, highlighting the urgent need for reform.
Trade representatives also voiced concerns over customs procedures, with one trader noting, “Forty trucks full of exports used to go to Iran every day. Now, due to bureaucratic hurdles, trade is severely hindered.” Chairman Mandviwala addressed this, stating that the SRO should be simplified and called for clearer procedures to facilitate smoother trade flows.
On the subject of remittances, Deputy Governor of the State Bank, Inayat Hussain, reported that Pakistan’s remittances saw a significant increase in recent years, rising from $23 billion in 2020 to $31 billion in 2022. However, the forecast for 2023 projects a decrease to $27 billion, though the government expects a rebound to $35 billion in 2024. “The incentives we’ve introduced have successfully increased remittances,” said Hussain, emphasizing the role of policy in driving financial inflows.
Briefing by SECP on its working and performance with special focus on achieving highest ever new company registrations in a month during January, 2025 was also discussed. The committee showed its satisfaction on its performance.
The Committee also took briefing by the Ministry of Finance and Revenue on the budgetary allocation and its utilization for the financial year 2024-25 and reviewed in detail allocation of each budgetary allocation.
Further Discussion on the incurring high cost USD on account of using Visa and Master Card Services with special focus on huge profit margins of visa and Master Cards was also discussed. The committee recommended that Visa card must also be issued and utilised internationally
The meeting concluded with a call for further collaboration between financial and customs authorities to streamline processes and ensure the effective implementation of economic reforms.
