News Detail
Event Title: Senator Saleem Mandviwalla, Chairman Senate Standing Committee on Finance and Revenue presiding over a meeting of the committee at Parliament House, Islamabad.
Event Date: 2026-03-12
A meeting of the Senate Standing Committee on Finance and Revenue was held at Parliament House under the chairmanship of Senator Saleem Mandviwalla.
The Committee discussed the alleged misuse of Politically Exposed Persons (PEPs) regulations, which members said was leading to undue harassment of parliamentarians, judges, senior officials, and their associates. The Committee also reviewed the government’s contingency planning and preparedness measures to ensure supply stability amid the current escalating conflict situation.
The meeting was attended by Senator Farooq H. Naek, Senator Muhammad Talha Mahmood, Senator Manzoor Ahmed, Senator Syed Faisal Ali Subzwari and Senator Muhammad Abdul Qadir, while Senator Sherry Rehman and Senator Anusha Rahman Ahmad Khan participated virtually.
During deliberations on PEP regulations, members raised serious concerns that the current framework was creating unnecessary hurdles in routine banking and business activities. Senator Farooq H. Naek particularly questioned Regulation No. 5, which includes close associates and family members of parliamentarians, arguing that such provisions make it difficult for individuals to conduct normal financial transactions or even open bank accounts.
Deputy Governor State Bank of Pakistan informed the Committee that the instructions were issued in line with requirements of the Financial Action Task Force (FATF). However, the Committee noted that the broad and general nature of these instructions could create an environment detrimental to business activity.
Members also questioned the authority of the State Bank of Pakistan to issue directives that could effectively override legislation passed by Parliament. The Committee emphasized that FATF regulations are primarily aimed at combating terror financing and should not create unnecessary obstacles for legitimate businesses.
To address the issue, the Chairman directed the constitution of a sub-committee to identify regulatory and operational gaps and propose solutions in consultation with all stakeholders, including scheduled banks. He stressed that regulatory frameworks must not be misused and that no individual should face undue hardship in the name of compliance.
The Committee also received a detailed briefing on the government’s preparedness and contingency measures to ensure supply stability and macroeconomic resilience amid the ongoing global tensions affecting energy markets.
Federal Minister for Fiance and Revenue informed the Committee that the government has adopted austerity and energy conservation measures to create sufficient fiscal space to absorb potential increases in global oil prices. It was further stated that the Prime Minister has constituted a high-powered committee headed by the Finance Minister to monitor the evolving situation on a daily basis and recommend necessary policy responses.
Members raised concerns about increases in oil prices on existing stocks and sought clarity regarding beneficiaries of such adjustments. The Committee urged the government to transparently explain market constraints before implementing price regulations. Federal Minister for Petroleum appraised committee that oil price determination is done as per average Platts benchmark prices and there is no change in price determination formula. He also informed that Strait of Hormuz is choked and vessels have to take a longer route. He further highlighted the four time increase of premium and high insurance costs owing to conflict.
State Minister for Finance and Revenue explained that recent oil price hike was taken as a measure to protect the oil supply chain. He further elaborated that as per mechanism the Oil Marketing Companies (OMCs) get profit as well as losses on their stocks maintened.
Federal Minister for Petroleum also informed that the supply of LPG from Iran remains intact. In response to concerns regarding possible further increases in oil prices, the Finance Minister assured the Committee that the government would carefully consider public interest while making any decisions. He added that efforts are being made to create a fiscal cushion through austerity measures to minimize the burden on citizens.
The Chairman Committee emphasized that in the event of rising energy costs, the government must ensure that the poorest segments of society are protected.
The Committee also took notice of a taxpayer-related case concerning the Alternate Dispute Resolution Committee (ADRC), where an FBR member had reportedly not signed the decision as other agenda item. The representative of M/s ADOS as petitioner briefed committee about the grievances. However, Member FBR informed the Committee that under existing law, the Federal Board of Revenue cannot reconstitute the ADRC. The Committee urged FBR to promote a business-friendly environment. The Chairman committee referred the matter to the Minister of State for Finance and Revenue to resolve it amicably and report to the committee within two weeks. He further directed FBR not to take any coercive measure against the petitioner.