Islamabad: The National Assembly Standing Committee on Finance and Revenue recommended that 'The Financial Institutions (Recovery of Finance) Amendment Act, 2026' be passed by the National Assembly after detailed deliberations on amendments aimed at protecting mortgagors from arbitrary and coercive recovery proceedings.

The meeting, held at Parliament House under the chairmanship of Syed Naveed Qamar, continued consideration of the proposed legislation and examined amendments relating to foreclosure and recovery procedures under various provisions of the bill, including Sections 15A(2), (6), (7), (10), (12), (14), 15(b), 15(d), and 15(17).

During clause-by-clause consideration of the newly inserted Section 15A, the Committee reviewed the proposed mechanism for issuance of first, second, and final notices, each carrying a minimum notice period of thirty days before further recovery proceedings could be initiated.

The Committee also discussed provisions related to restructuring, rescheduling, and settlement of mortgage liabilities and expressed concern that borrowers should not face indefinite delays by financial institutions in processing such requests.

Chairman Syed Naveed Qamar emphasized the importance of maintaining a fair and equitable balance between the rights of financial institutions and borrowers.

Members extensively debated the proposed foreclosure mechanism under housing finance arrangements and voiced concern that, without adequate legal safeguards, the framework could operate harshly against borrowers and ordinary citizens.

The Committee also approved the minutes of its previous meeting held on May 13, 2026.

The meeting was attended by Mr. Bilal Farooq Tarar, Dr. Nafisa Shah, Dr. Sharmila Faruqui, Dr. Mirza Ikhtiar Baig, and Mr. Muhammad Jawed Hanif Khan, MNAs, along with the State Minister for Finance and Revenue, Secretary Ministry of Law and Justice, and senior officers from the Finance Division, Law Division, and the State Bank of Pakistan.