Islamabad: A meeting of the Senate Standing Committee on Finance and Revenue was held at Parliament House under the chairmanship of Saleem Mandviwalla, where members discussed the alleged misuse of Politically Exposed Persons (PEPs) regulations and reviewed the government’s preparedness to ensure supply stability amid escalating global tensions.The committee expressed concern that current PEP regulations were leading to undue harassment of parliamentarians, judges, senior officials and their associates.
Members noted that the existing framework was creating unnecessary hurdles in routine banking and business activities.During the discussion, 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.Officials from the State Bank of Pakistan informed the committee that the instructions were issued in line with requirements of the Financial Action Task Force. However, committee members observed that the broad nature of these directives could negatively affect business activities and questioned whether the central bank could issue instructions that effectively override legislation passed by Parliament.To address the issue, Chairman Mandviwalla directed the formation of a sub-committee to identify regulatory and operational gaps and propose solutions in consultation with stakeholders, including scheduled banks. He emphasized that compliance measures should not result in undue hardship for individuals.
The committee also received a briefing on the government’s contingency planning to ensure supply stability and macroeconomic resilience amid ongoing global tensions affecting energy markets. Finance officials informed members that austerity and energy conservation measures had been adopted to create fiscal space to absorb potential increases in global oil prices.The committee was told that a high-powered committee headed by the Finance Minister had been constituted on the directions of the Prime Minister to monitor the evolving situation on a daily basis and recommend policy responses.Members also raised concerns over recent increases in oil prices and sought clarity regarding beneficiaries of adjustments on existing stocks. Officials from the Petroleum Division explained that oil prices are determined according to the average Platts benchmark and that the formula for price determination remains unchanged. They also noted that disruptions in the Strait of Hormuz have forced vessels to take longer routes, leading to higher premiums and insurance costs.
The committee was further informed that the supply of LPG from Iran remains intact. Finance officials assured members that any future decisions regarding oil prices would take public interest into account and that efforts were being made to minimize the burden on citizens.Chairman Mandviwalla emphasized that if energy costs rise further, the government must ensure protection for the poorest segments of society.The committee also took notice of a taxpayer-related matter concerning the Alternate Dispute Resolution Committee (ADRC). After hearing the petitioner’s grievances, members were informed by officials of the Federal Board of Revenue that the ADRC could not be reconstituted under existing law.
The chairman referred the matter to the Minister of State for Finance and Revenue for resolution within two weeks and directed FBR not to take any coercive measures against the petitioner.
