Islamabad: The Standing Committee on Finance and Revenue convened at Parliament House under the chairmanship of Syed Naveed Qamar to deliberate on “The Financial Institutions (Recovery of Finance) Amendment Act, 2026.” The committee examined proposed amendments aimed at protecting mortgagors from arbitrary practices in foreclosure and recovery processes and recommended that the bill be passed by the National Assembly.

According to National Assembly of Pakistan, the committee conducted a detailed clause-by-clause review of Section 15A, focusing on the issuance of notices before recovery proceedings, each with a mandatory 30-day notice period. Concerns were raised about potential delays faced by borrowers in the restructuring and rescheduling of mortgage liabilities. The committee emphasized the necessity of balancing the rights of both financial institutions and borrowers.

The proposed foreclosure mechanisms, particularly in housing finance, were debated, with the committee expressing concerns about the lack of legal safeguards that could negatively impact borrowers. The meeting also included the approval of minutes from the previous session and was attended by several members of the National Assembly, the State Minister for Finance and Revenue, and senior officials from relevant government departments.