A meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, here at Parliament House on Wednesday reviewed the Government Reforms and Institutional Restructuring.

The session began with the presentation of the Committee’s Annual Report covering the period from June 2024 to March 2025. The Committee members also discussed the finalization of the Private Member’s Bill titled ‘The Income Tax (Amendment) Bill, 2025.’

The Bill was introduced by Senator Zeeshan Khanzada during the Senate sitting on February 17, 2025. The discussion focused on objections raised regarding the bill’s classification as a money bill, and members explored the possibility of incorporating changes without designating it as such.

Senator Anusha Rahman countered that the bill does not directly interfere with taxation. ‘If a proposal leads to improvement, we should consider it rather than block it,’ she added.

To seek further clarity, the Committee unanimously decided to summon the Chairman of the Federal Board of Revenue (FBR) for the next meeting before finalizing the bill.

The Secretary of the Cabinet Division briefed the Committee on the government’s right-sizing initiative. He informed the Committee that the Prime Minister had instructed a reduction in the size of the federal government to improve efficiency and prioritize core responsibilities, and added that institutional reforms had also been initiated as part of this directive.

‘The primary goal is for the federal government to focus on its essential functions, while transferring additional responsibilities to the provinces,’ the Secretary of the Cabinet Division explained.

He said the Prime Minister had also ordered a review of government-run commercial activities to assess their necessity and effectiveness. He clarified that regulatory authorities would not be impacted by the right-sizing process.

However, these bodies are being asked to submit data on consultants, staff strength, and salary structures. The effects of right-sizing on autonomous institutions are also being examined.

The Committee members were informed that the performance of the Right-Sizing Committee is under regular review, with questions being raised to ensure transparency and accountability.

Senator Sherry Rehman expressed concern over the government’s approach to reforms. ‘On one hand, the government talks about cutting costs, yet on the other, it has doubled the size of the federal cabinet,’ she stated.

She also raised concerns that the right-sizing policy could cause significant hardship for government employees. ‘What will be the impact on those who are forced into early retirement?’ she asked.

In response, the Cabinet Secretary acknowledged that the decision to implement right-sizing was critical. ‘This step alone will result in substantial savings for the state,’ he said.

He also noted that the elimination of redundant posts had already led to considerable cost reductions. ‘These efforts aim to increase operational efficiency across government departments,’ he added.

On the issue of new ministerial appointments, the Cabinet Secretary stated, ‘The induction of new ministers is expected to enhance the overall performance of ministries, in line with the broader agenda of institutional reform.’

The meeting underscored the complexities of balancing fiscal discipline with administrative effectiveness and the challenges involved in executing large-scale structural reforms.

The Chairman of the Committee, along with its members, unanimously decided to review the matter thoroughly and department-wise, and to discuss it further in the next meeting.