The State Bank of Pakistan (SBP) notified the Standing Committee on Finance and Revenue on Tuesday that the economy is slowly rebounding, with no excessive strain on the foreign exchange balance or price levels. The committee gathering took place at Parliament House in Islamabad, chaired by Member of National Assembly Syed Naveed Qamar. Throughout the discussion, participants received updates regarding the present monetary strategy and patterns in inflation.
A spokesperson from the SBP mentioned that a cautious approach to monetary policy has supported overall economic stability, as inflation has dropped considerably and is anticipated to stay within the desired range. Additionally, it was highlighted that foreign currency reserves have seen an enhancement; nonetheless, ongoing initiatives to strengthen these reserves are crucial. Inflation is forecasted to largely remain between 5% and 7% in the short run. He responded to several inquiries raised by the chairman and committee members, stating that economic growth is slowly rebounding but in a more sustainable manner, avoiding undue pressure on both inflation and the balance of payments. He added that progress in the external sector is visible through the significant drop in the current account deficit and the increase in the SBP’s foreign exchange reserves.
The panel reviewed “The Corporate Social Responsibility Bill, 2025,” introduced by Dr Nafisa Shah, an MNA. The finance secretary and head of SECP were instructed to present their individual suggestions to the committee. Following extensive deliberation, the topic was postponed until the subsequent session. Information regarding taxes applied in former FATA and PATA regions within the Budget 2025-26 and its execution progress was shared with the committee. They examined sales tax matters in the recently integrated districts of Khyber Pakhtunkhwa, addressing difficulties related to tax percentages and exploring different methods for consumer taxation. Syed Naveed Qamar highlighted the effects of rising sales taxes and stressed the necessity of making informed policy choices based on data. He voiced worries over ineffective policymaking and insufficient proof concerning job growth and developmental gains resulting from these tax strategies. The chair underscored the significance of focusing on job creation and manufacturing advancement instead of solely prioritizing profit margins during discussions on tax advantages.
Members also voiced worries about policy talks concerning domestic production, job creation, and how rising sales taxes affect different products and regional economies. Additional concerns were raised over inefficient policies and broken commitments, with honorable representatives discussing the effects of sales tax on various items and their influence on local economies, especially in less affluent areas. References were made to pledges made during the budget period related to tax waivers, which had not been honored. The conversation also addressed possible abuse of tax advantages and the necessity for improved systems to promote industrial growth in neglected zones. The committee postponed the item for more consideration at the following session.
Once more, the committee voiced its dissatisfaction with the secretary from the Ministry of Industries and Production missing the session, emphasizing that his attendance was crucial for productive discussions. As a result, the committee chose to postpone the review of the agenda point concerning the new Electric Vehicle Policy until their subsequent meeting and instructed the secretary to be present for the debate. All members agreed to approve the records from the last gathering. Attendees included Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Ali Zahid, Ms Hina Rabbani Khar, Ms Sharmila Sahiba Faruqui Hasham, Dr Nafisa Shah, Ms Zeb Jaffar, Mirza Ikhtiar Baig, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Shahram Khan, Muhammad Mobeen Arif, Usama Ahmed Mela, Muhammad Ali Sarfraz, Ms Shahida Begum, and various MNAs. Additionally, Bilal Azhar Kayani, Minister of State for Finance, chairperson of FBR, chairperson of SECP, along with officials from the Finance and Revenue departments, were also at the meeting.
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