Senate panel assured: FBR to replace banking instrument with insurance guarantee

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday assured a parliamentary panel that the condition of bank guarantees/cheques would be replaced with insurance guarantees, where admissible, to resolve problems being faced by exporters and businesses while dealing with banking transactions.

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 FBR, dual nationality of FBR officers, industrial policy for economic growth, and measures to restore normal business hours.

The meeting was attended by Senator Dr Afnan Ullah Khan, Senator Bilal Khan and Senator Jam Saifullah Khan.

The Sub-Committee also discussed difficulties being faced by exporters and businesses in banking transactions and emphasised the need for practical alternatives, including the use of insurance guarantees in place of bank guarantees or cheques, where permissible. FBR assured the Sub-Committee that the matter would be examined and resolved.

The Sub-Committee stressed the need for FBR to strengthen its engagement with the business community through maximum facilitation and improved ease of doing business. The Convenor highlighted the concerns of the business community and emphasised that a business-friendly environment was essential for expanding economic activity and increasing tax revenues.

FBR informed the Sub-Committee that several confidence-building measures had been introduced, including collaborative committees comprising representatives of the business community and FBR. The Committee was further apprised that, on the directives of the Prime Minister, the Chairman FBR would hold 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 the same facilitation measures be communicated to FBR Chief Commissioners for effective implementation.

The Convenor recommended introducing facial recognition technology to facilitate taxpayers whose fingerprints have faded or cannot be verified. The FBR and NADRA were directed to coordinate and resolve the issue on an urgent basis. It was further directed to submit a list of FBR officials holding dual nationality and permanent foreign residency.

Copyright Business Recorder, 2026