Islamabad: On May 29, 2025, the Senate Standing Committee on Finance and Revenue, under the leadership of Senator Saleem Mandviwalla, addressed several financial and trade matters. A major point of discussion was the Income Tax (Second Amendment) Bill 2025, which was approved by the committee.
A significant concern raised was the withdrawal of tax exemptions for salaried individuals, particularly teachers, leading to substantial salary deductions. The meeting was attended by notable figures including Senators Mohsin Aziz, Abdul Qadir, Manzoor Kakar, the Chairman of the Federal Board of Revenue (FBR), and senior officials from the Ministry of Finance, Ministry of Law, and FBR.
Senator Mohsin Aziz advocated for a refund or adjustment process for those affected. Senator Mandviwalla took a strong stance, directing the Federal Board of Revenue (FBR) to provide a comprehensive report detailing the teachers impacted and the status of their refunds. He stressed that failing to return these deducted amounts would undermine the law’s purpose. The FBR Chairman assured the committee of compliance and supported its recommendations.
The committee also reviewed budgetary allocations and utilization under the Public Sector Development Programme (PSDP) for FY 2024-25. While the Planning Commission expressed concerns about lapsed project budgets, officials from the Finance Ministry clarified that no funds had lapsed, and over 50% of the authorized funds had already been disbursed. To ensure transparency, Senator Mandviwalla requested written figures and suggested summoning the Finance Ministry and other relevant departments for further clarification.
Furthermore, the committee delved into the proposed barter trade mechanism between Pakistan and Iran. Senator Mandviwalla questioned the absence of a formal net-off settlement mechanism and urged relevant departments to establish a clear procedure. The committee emphasized the need to relax existing restrictions and broaden the list of tradable items. Senator Mandviwalla called upon stakeholders to submit proposals for new items and directed authorities to resolve operational issues such as limited customs hours and storage space at NLC terminals in Quetta. He also recommended the formation of a local committee in Quetta to address traders’ concerns on the ground. This will potentially lead to better cooperation between Pakistan and Iran, resulting in stronger ties.