Islamabad: The Standing Committee on Finance and Revenue convened to address concerns over the proposed amendments to “The Financial Institutions (Recovery of Finance) Amendment Act, 2026.” Chairman Syed Naveed Qamar expressed significant concerns regarding the indemnity provisions and extensive protections for financial institutions and their officials, emphasizing that such clauses should not become a standard feature in legislation.

According to National Assembly of Pakistan, the meeting, chaired by Qamar at the Parliament House, involved a detailed examination of the amendments, especially the newly introduced Section 15A related to housing finance and foreclosure procedures. Members of the Committee voiced concerns that without adequate safeguards, the proposed framework could place undue burdens on borrowers.

The Committee highlighted the necessity for legislation that ensures fairness and adequate protection for borrowers while enabling financial institutions to recover defaulted loans. There was a consensus on the need for meaningful remedies and appellate protections to prevent misuse of power and arbitrary foreclosure actions. Broader concerns were also raised about the increasing trend of granting sweeping powers to institutions without corresponding accountability mechanisms.

The Committee directed the relevant Ministry and stakeholders to incorporate their amendments and observations into the revised draft for further consideration. The meeting also approved the minutes from the previous session held on May 7, 2026. Attendees included several Members of the National Assembly, the State Minister for Finance and Revenue, and senior officials from the Finance Division and the State Bank of Pakistan.