A Senate finance subcommittee has urged the government to renegotiate with the International Monetary Fund over plans to phase out Pakistan’s Export Processing Zones and Special Economic Zones by 2035, warning that the move could hurt industrial activity, exports and investment.
The Ministry of Industries and Production told the Senate Standing Committee on Finance and Revenue that the phaseout is part of the IMF’s Extended Fund Facility conditionality aimed at bringing different sectors under a uniform tax regime. After reviewing the issue, the subcommittee recommended that the government seek changes to prevent EPZs and SEZs from being adversely affected.
The panel, chaired by Senator Talha Mahmood, also examined difficulties faced by exporters and businesses in banking transactions. It called for practical alternatives to bank guarantees and cheques, including insurance guarantees where permitted. The Federal Board of Revenue said it would examine the issue.
The committee also discussed measures to improve tax administration and taxpayer facilitation. It recommended the use of facial recognition technology for taxpayers whose fingerprints cannot be verified and directed the FBR and National Database and Registration Authority to coordinate on the issue. The FBR was also asked to provide a list of officials holding dual nationality or permanent foreign residency.
The panel was separately briefed on the National Auto Policy and measures to support electric vehicle adoption. It was told that viability gap funding is available to support the initial establishment of 3,000 EV charging stations across the country. The committee also discussed early market closures affecting businesses during power outages, with officials linking recent power constraints to disruptions in RLNG supplies and subsequent load management measures.
The Securities and Exchange Commission of Pakistan also briefed the committee on unauthorized share transfers and legal disputes involving forged signatures and other unlawful practices.
The committee was told that the SECP is digitalizing the share market and taking action against individuals and companies involved in illegal activities, while lawmakers called on the FBR to strengthen engagement with businesses and improve the ease of doing business.
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