Islamabad, November 16, 2021 (PPI-OT):65th meeting of the National Assembly Standing Committee on Finance and Revenue was held today at 02:00 p.m., in Committee Room No. 7, Parliament House, Islamabad, under the chairmanship of Mr. Faiz Ullah, MNA.
The Committee discussed the issues noted during the visit of the Parliamentary delegation to Azerbaijan headed by the Hon. Speaker regarding prolonged and cumbersome due diligence by Pakistani banks over use of Iran (Taftan Border) as transit country, above and beyond Anti-Money Laundering (AML) requirements set by the State Bank of Pakistan (SBP).
Special Invitees briefed the Committee that in many instances, documents have to be changed showing other Central Asian Countries as appetite to conduct trade between Pakistan and Azerbaijan. The situation needs serious mitigation. They were of the recommendation that selected commercial banks may be asked to do away with these onerous requirements.
The Special Invitees/Members have shared their observations regarding the issues being faced to the business community of Azerbaijan and Pakistan due to the banking system and lack of interest by the private banks.
After threadbare discussion the Committee directed the State Bank of Pakistan to come up with a viable solution of the problems being faced to both sides, in consultation with all stockholders within thirty days.
The Committee discussed the Calling Attention Notice No. 18 regarding deduction of 5% maintenance allowance from the salaries of the Federal Government employees working in BPS-6 to BPS-15 move by Mr. Ali Nawaz Awan, MNA. The Additional Secretary Ministry of Finance informed the Committee that the Hon.
Prime Minister during the recent meeting held on 29th October, 2021 on the affairs of Pak-PWD has decided that 5% deduction from salary of Federal Government employees may be diverted to Pak-PWD in consultation with relevant stakeholders, accordingly the two proposals were submitted i.e.
(i). The employees of BS-1 to BS-5 may remain exempted from deduction of 5% normal rent and the employees in BS-6 to BS-22 of all departments including President’s Secretariat, Prime Minister’s Office, National Assembly Secretariat, Senate Secretariat and National Accountability Bureau may be charged 5% normal rent on account of allotment of Government accommodation and exemption granted to the employees of these departments may be withdrawn to avoid discrimination amongst the Federal Government Employees.
(ii). the 5% deduction from salary of FG employees may be diverted to Pak-PWD in consultation with relevant stakeholders as decided by the Prime Minister.
While considering the agenda about Pakistan’s rupee devaluation, monetary policy and its inflationary impact, the Committee members were of the view that Governor State Bank of Pakistan (SBP) should brief the Committee in-person. However, the Committee asked the Deputy Governor, SBP to apprise the Committee in this regard.
The Committee members have expressed their grave concerns over the devaluation of Pak Rupees to USD $ and conveyed their apprehensions with regard to the increase in inflation. The members were of the opinion that devaluation of Pak Rupees will not provide any space to control the inflation in the country.
The Committee noted the effects of trade deficit and current deficit on the economy. The Committee decided that the Governor State Bank of Pakistan may be invited in the next meeting of the Committee for further discussion in this regard. The Committee deferred the remaining agenda for its next meeting due to a short of time.
6. The meeting was attended by Mr. Sadaqat Ali Khan Abbasi, Mr. Jamil Ahmed, Mr. Faheem Khan, Mr. Ahsan Iqbal Chaudhary, Mr. Qaisar Ahmed Sheikh, Dr. Aisha Ghous Pasha, and Dr. Nafisa Shah. Movers Mr. Ali Nawaz Awan, Ms. Kishwar Zehra and Special Invitees Raja Khurram Shahzad Nawaz and Ms. Munaza Hassan besides the senior officers from M/o Finance and Revenue, SECP, FBR, M/o Housing and Works, State Bank of Pakistan and M/o Law and Justice.
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National Assembly of Pakistan
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