ISLAMABAD: The Senate Standing Committee on Finance and Revenue on Wednesday demanded the withdrawal of all requirements for extending financial services to all Politically Exposed Persons (PEPs) without any discrimination between politicians and others.
The Senate panel also unanimously passed a resolution to introduce new legislation or amend the present laws/rules/regulations to ensure minimum credit/lending of commercial banks to private sector for establishing industry and commercial activities in the smaller provinces such as Balochistan and KP to bring them at par with other provinces.
The committee met under the chair of Senator Taleh Mehmood at Parliament House on Wednesday.
Deliberating over point of public importance regarding opening/maintenance of politically exposed persons’ (PEPs) accounts raised by Senator Danesh Kumar, the committee was informed that no restrictions were imposed regarding opening accounts for PEPs.
However, there are certain measures that banks need to take in this regard and they include obtaining approval from senior management, justifying sources of wealth and funds.
Moreover, are numerous tedious procedures to identify PEPs and their close kin that hindered progress in important matters that were a source of continuous stress.
Members of the committee demanded these requirements be withdrawn immediately and a compliance report submitted within five days.
Governor State Bank of Pakistan Dr Reza Baqir said a mechanism would be devised in consultation with the stakeholders to ensure the provision of lending for underserved areas of Balochistan and KP.
He said that the banks were not properly lending in underserved areas and the SBP was exploring different options to tackle this issue.
He said they were considering changing the law and currently examining pros and cons of such amendments.
The State Bank of Pakistan (Amendment) Bill (2021) introduced by Senator Mohsin Aziz was passed with amendments.
The Bill seeks to rectify unjustified and inequitable credit lending that has been a long-standing demand of smaller provinces.
The bill will ensure minimum credit/lending of commercial banks to private sector for establishing industry and commercial activities in smaller provinces is at par with those provinces' total deposits.
The committee pended the matter of placement of Gurr (jaggery) and sugar in the same category in customs clearance leading to hurdles for farmers and exporters, raised by Senator Fida Muhammad.
Directives were given for more details on the matter to be submitted to the committee in the next meeting.
The committee also discussed the matter of Pakistan Pharmaceutical Manufacturers Association’s (PPMA) reservations over finance supplementary bill and the bill’s impact on the availability of medicines and the pharmaceutical industry.
The committee asked for more details on the change in prices of medicines before and after the budget and of cases in which sales tax had been reimbursed within 24 hours.
The Federal Board of Revenue and the Drug Regulatory Authority of Pakistan (DRAP) have been summoned in the next meeting.
Reviewing the case of issues faced by exporters in trade with Afghanistan due to a letter issued on December 7, 2021, the committee said a robust framework must be formulated to ensure smooth and uninterrupted trade between the two countries. Some members suggested that letter be withdrawn to restore the trade.