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: 2026-07-29
Senate Finance Committee Directs SBP to Standardize Banking Procedures, Rules Out Mandatory Abaya in Banks
The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, met today at Parliament House, Islamabad. The meeting was attended by Senators Sherry Rehman, Manzoor Ahmed, Dilawar Khan and Muhammad Abdul Qadir. Senators Kamil Ali Agha, Dr. Zarqa Suharwardy Taimur (via zoom) and Member National Assembly Muhammad Moin Amir Pirzada participated as Special Invitees.
The Committee reviewed complaints regarding difficulties faced by customers, particularly Politically Exposed Persons (PEPs), in dealing with commercial banks. MNA Muhammad Moin Amir Pirzada informed the Committee that despite its earlier directions to designate dedicated officers in banks and the State Bank of Pakistan (SBP), no uniform Standard Operating Procedures (SOPs) had been developed. He further informed the Committee that his bank account had been closed in April 2026 and, despite repeated correspondence with the concerned bank and SBP, no response had been received. He emphasized the need for a standardized annual data updation mechanism to prevent such incidents.
Governor State Bank acknowledged that while regulations governing PEP-related cases already exist, the lapse occurred at the branch level. He informed the Committee that a backup officer had been designated and assured members that a dedicated focal person would also be appointed. The Committee emphasized the need for uniform SOPs across the banking sector, while the Federal Minister for Finance stressed that standardized procedures are essential to ensure effective customer service and grievance redressal.
The Committee also discussed investment protection policies. Senator Manzoor Ahmed proposed extending the incentives currently available for the Reko Diq project to other investment projects across Pakistan. Officials of the Ministry of Finance informed the Committee that only one project currently qualifies under the existing criteria and that the government's fiscal position does not permit extending similar concessions. The Finance Minister assured the Committee that future proposals would be considered within the available fiscal space.
Discussing taxes collected through electricity bills, Senator Kamil Ali Agha expressed concern over the burden on consumers. Chairman FBR informed the Committee that approximately Rs. 476 billion had been collected through electricity bills, including Rs. 351 billion in sales tax and Rs. 124 billion in adjustable withholding income tax, explaining that sales tax on electricity forms part of the country's overall sales tax regime.
The Committee also discussed the non-issuance of revised payslips to Directors Staff and Private Secretaries of the Senate Secretariat by AGPR. Chairman Committee directed the concerned authorities to resolve the matter within seven days, warning that failure to comply would result in referral to the Senate Privileges Committee.
The Committee further reviewed banking service charges, including SMS alert charges and card transaction issues. Governor State Bank informed the Committee that SMS alerts are optional and subject to customers' consent, while banks are introducing app- and email-based alerts as alternatives. He also informed the Committee that Visa card transactions conducted within Pakistan would not be charged in US dollars and that banks are currently bearing approximately Rs. 80 billion annually under the Pakistan Remittance Initiative (PRI). Committee members appreciated the Chairman's efforts for introducing PRI reforms, which have resulted in annual savings of around Rs. 80 billion.
The Committee also took up complaints regarding dress code instructions in certain banks. Senator Dr. Zarqa Suharwardy Taimur informed the Committee that female employees were allegedly being compelled to wear abayas. Senator Sherry Rehman emphasized that no employee should be forced to adopt any specific attire. The Governor State Bank informed the Committee that its previous recommendations had already been conveyed to all banks. The Committee reiterated that it had only directed observance of a modest dress code and had never mandated any specific attire. It directed all banks to submit their Human Resource dress code policies and instructed SBP to circulate updated guidelines to ensure that no employee is subjected to unnecessary compulsion.