Islamabad: A meeting of the Sub-Committee of the Senate Standing Committee on Finance and Revenue was held under the convenorship of Senator Muhammad Talha Mahmood to consult the business community on industry relocation from Pakistan, governance and policy practices within the Federal Board of Revenue (FBR), industrial policy and measures aimed at restoring normal business hours.

Senators Dr. Afnan Ullah Khan, Bilal Khan and Jam Saifullah Khan also attended the meeting.

The Sub-Committee stressed the need for the FBR to strengthen its engagement with the business community through maximum facilitation and improved ease of doing business.

The Convenor said a business-friendly environment was essential for expanding economic activity and increasing tax revenues.

FBR officials informed the Committee that several confidence-building measures had been introduced, including collaborative committees comprising representatives of the business community and the FBR.

The Committee was further informed that, on the directives of the Prime Minister, the Chairman FBR would establish a camp office in Karachi during the first week of every month. A similar two-day camp office is also planned in Lahore to enable businessmen to resolve their issues without travelling to Islamabad.

The Convenor appreciated the initiative and directed that these facilitation measures be communicated to FBR Chief Commissioners for effective implementation.

The Sub-Committee also discussed difficulties faced by exporters and businesses in banking transactions and called for practical alternatives, including the use of insurance guarantees in place of bank guarantees or cheques where permissible.

FBR assured the Committee that the matter would be examined and resolved.

The Convenor recommended introducing facial recognition technology to facilitate taxpayers whose fingerprints have faded or cannot be verified. FBR and NADRA were directed to coordinate and resolve the matter on an urgent basis.

The Committee also directed the submission of a list of FBR officials holding dual nationality and permanent foreign residency.

The Ministry of Industries and Production briefed the Committee on issues concerning Export Processing Zones and Special Economic Zones.

The Sub-Committee was informed that under IMF Extended Fund Facility conditionality, these zones would be phased out by 2035 to eliminate distortions and bring sectors at par under the tax regime.

After detailed deliberations, the Convenor recommended that EPZs and SEZs should not be adversely affected and called for renegotiation of the matter with the IMF in view of Pakistan's industrial and investment interests.

The Committee was also briefed on the Battery Energy Policy aimed at promoting the production of modern sodium and lithium batteries. The policy is currently under review by a committee headed by the Deputy Prime Minister and is expected to be finalized soon.

Regarding the National Auto Policy, the Ministry informed the Committee that viability gap funding was available to support the establishment of an initial 3,000 electric vehicle charging stations across Pakistan.

The Convenor stressed the need for safeguards to protect and promote local industry while encouraging the transition towards electric mobility.

The Sub-Committee also discussed challenges confronting the housing and construction sectors and observed that cities needed to expand vertically to address growing urbanization.

The Convenor noted that high Floor Area Ratio fees in the federal capital were contributing to increased construction costs and inflated apartment prices and recommended a review of the existing fee structure to facilitate affordable housing and construction activity.

The issue of early market closures was also discussed, particularly in the wake of power outages.

The Committee was informed that the current power situation was linked to disruptions in RLNG consignments and subsequent load-management measures aimed at keeping electricity prices lower.

The Convenor recommended the gradual restoration of normal business hours, initially proposing an increase of at least 30 minutes in existing market closure timings.

The Securities and Exchange Commission of Pakistan briefed the Committee on unauthorized and illegal share transfers and legal disputes arising from forged signatures and other unlawful practices.

The Committee was informed that SECP had undertaken digitalization of the share market and was taking action against individuals and companies involved in illegal activities.

The Competition Commission of Pakistan also briefed the Committee on measures against cartelization and other anti-competitive practices.

The Sub-Committee reiterated that coordinated institutional reforms, greater facilitation of businesses and a predictable and business-friendly regulatory environment were essential for promoting investment, industrial growth, employment and sustainable economic development.