The Senate Standing Committee on Finance and Revenue has called for a significant overhaul of Pakistan’s remittance system, questioning the effectiveness of the Pakistan Remittances Initiative (PRI) and its impact on overseas Pakistani workers. During a meeting on Wednesday at Parliament House, chaired by Senator Saleem Mandviwalla, concerns were raised about the high transaction costs associated with remittances and whether the intended beneficiaries are truly reaping the advantages. The committee argued that banks and money transfer firms appear to be absorbing a substantial portion of the benefits, diminishing the value received by families in Pakistan.
The committee has requested a comprehensive examination of the PRI’s financial records, including a detailed account of expenses and reversed transactions over the past several years. Mandviwalla stressed the urgency of streamlining the remittance process and reducing costs to maximize the financial support provided by overseas Pakistanis. The Minister of State for Finance and Revenue assured the committee that the government would collaborate with the State Bank and other stakeholders to address these concerns and prevent any potential misuse of the system.
Beyond the remittance debate, the committee also addressed the stalled implementation of a Presidential Order issued on July 16, 2025. The order’s execution has been hampered by a legal challenge in the Sindh High Court, raising constitutional and compliance issues. The Chairman of the Federal Board of Revenue (FBR) informed the senators that the Attorney General’s opinion has been sought to clarify the legal complexities. The committee will revisit this matter once the legal landscape is clearer.
The committee also postponed further discussion on the proposed “Virtual Assets Bill, 2025” until they receive a briefing from the head of the intended regulatory authority. Senators present included Dilawar Khan, Fesal Vawda, Abdul Qadir, and Ahmed Khan, along with the Minister of State for Finance and Revenue, the Chairman FBR, the Secretary of the Ministry of Law and Justice, and other senior officials.