The National Assembly Standing Committee on Finance and Revenue has called on the Federal Board of Revenue (FBR) to implement automation of the tax refund process, aiming to ensure timely payments particularly for exporters and domestic manufacturers. This directive came from the committee’s chairman, Syed Naveed Qamar, who expressed serious concerns over ongoing challenges faced by taxpayers, including delays in refunds and the burden of double taxation caused by policy inconsistencies within the Revenue Division.
During the session, Qamar highlighted the urgent need for systemic reforms within the FBR to tackle these issues effectively. He emphasized the importance of eliminating malpractices, simplifying complex procedures, and developing a transparent and fair taxation system. These measures, he argued, are essential to restoring trust among businesses and the public at large, which has been eroded by inconsistent policies and inefficient processes.
The committee’s focus on automation reflects a broader national push towards digital transformation within Pakistan’s financial regulatory framework. Automating refunds not only promises to speed up the disbursement of tax returns but also reduces human errors and opportunities for corruption, which have long plagued the tax system. Exporters and manufacturers, who form a significant part of Pakistan’s economic backbone, are often the most affected by delays and disputes related to tax refunds, impacting their cash flow and competitiveness in both local and international markets.
In addition to addressing taxation issues, the committee also reviewed the Parliamentary Budget Office Bill, 2025. This legislation aims to establish an independent Parliamentary Budget Office (PBO), designed to enhance legislative oversight of fiscal policies, revenue forecasts, and government expenditures. The committee expressed unanimous support for the bill and created a subcommittee tasked with further analysis and recommendations to ensure the bill’s provisions meet international standards of fiscal scrutiny.
Chairman Syed Naveed Qamar described the PBO as a non-partisan entity that would provide lawmakers with expert economic analysis and data-driven evaluations, enabling more informed and evidence-based policymaking. This development is expected to strengthen parliamentary control over the country’s financial management, promoting accountability and transparency.
Meanwhile, discussion on the Income Tax (Second Amendment) Bill, 2025, was deferred due to the absence of the FBR chairman, whose input is considered vital for a comprehensive review. The delay reflects ongoing challenges in coordinating between legislative bodies and the revenue authority, underscoring the importance of collaboration to implement effective fiscal reforms.
The session also featured input from the President of the Karachi Chamber of Commerce and Industry (KCCI), who presented budget recommendations and voiced concerns regarding recent policy shifts in the Finance Act, 2024. Particularly contentious was the government’s decision to move exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR). The KCCI president urged the committee to consider reversing this change and restoring zero-rating on local supplies, arguing that such steps are critical to maintaining industrial competitiveness and supporting economic growth.
This meeting reflects the ongoing efforts by Pakistan’s financial oversight bodies to address critical challenges in the taxation system and improve the regulatory environment for businesses. By pushing for automation, transparency, and legislative support through initiatives like the Parliamentary Budget Office, the committee aims to foster a more efficient and fair fiscal landscape that can support the country’s broader economic ambitions.
