ISLAMABAD: Senate Standing Committee on Finance and Revenue Wednesday decided to call scholars of Council of Islamic Ideology (CII) of Pakistan to have an input on working of Islamic banking operations in Pakistan.
A separate meeting will be scheduled to focus on the abolition of interest and provide a detailed briefing on Islamic banking practices.
Explaining salient features of Islamic banking, Deputy Governor of the State Bank of Pakistan (SBP) informed the committee that the main difference between the conventional banking and Islamic banking is Riba.
DG SBP for fully embracing true Islamic financial system value
An important issue discussed was Islamic banking in Pakistan, raised by Senator Farooq Hamid Naek, who pointed out that full implementation of Islamic banking is set for 2027, yet progress has been slow.
The SBP Deputy Governor emphasized the need for continued deliberation on Islamic banking and assured the Committee that several banks are actively working towards compliance.
Chairman Federal Board of Revenue (FBR) informed the committee that the enforcement of the FBR would be improved in coming months after approval of transformation plan including enhancing Board’s operational expertise/organisational capacities and anti-smuggling measures.
The Senate Standing Committee on Finance and Revenue convened Wednesday under the chairmanship of Senator Saleem Mandviwalla at the Parliament House.
The meeting was attended by Senators Farooq Hamid Naek, Mohsin Aziz, Syed Shibli Faraz, Anusha Rahman Ahmad Khan, Danesh Kumar, Munzoor Ahmed, and Syed Faisal Ali Subzwari.
The committee addressed a series of pressing matters of public importance, with an emphasis on tax policy, banking regulations, and economic governance.
Key discussions included the contentious 10 percent levy on transport and businesses across Pakistan and Iran, raised by Senator Manzoor Ahmad Kakar in a Senate session on 9th September 2024.
The Committee resolved to report to the house that the issue may be referred to the Standing Committee on Communications, noting that the levy, imposed with federal government approval, does not pertain to the FBR. While FBR officials emphasised that this specific tax is not their responsibility.
Senator Kakar raised concerns that Pakistani trucks were being unfairly taxed, with over 600 trucks currently parked due to the levy. The Committee agreed to forward the matter to the Communications Committee for further deliberation.
Copyright Business Recorder, 2024