Higher business costs: MoF, SECP strongly object to amendments thru CSR Bill

ISLAMABAD: Ministry of Finance and Securities and Exchange Commission of Pakistan (SECP) strongly objected to amendments through “The Corporate Social Responsibility Bill, 2025”, arguing it will increase cost of doing business of companies in Pakistan.

The 16th meeting of the Standing Committee on Finance and Revenue was held Wednesday at the Parliament House under the chairmanship of Syed Naveed Qamar, MNA.

SECP Chairman Akif Saeed said that the amendments should not be proposed in the existing law. The present objective can be achieved through other alternate options. The law would create discrimination between the cost of doing business of association of persons (AOPs) and registered companies.

Secretary Finance observed that we will come up with a solution where objective would be achieved without increasing cost of doing business of the companies.

The committee considered “The Parliamentary Budget Office Bill, 2025”, moved by Rana Iradat Sharif Khan, MNA, and constituted a Sub-Committee under the Convenorship of Dr Nafisa Shah, MNA, for detailed deliberation on the bill and submission of its report within 30 days. Ali Zahid, Arshad Abdullah Vohra, and Muhammad Mobeen Arif, MNAs, will be the members of the newly appointed sub-committee.

Dr Mirza Ikhtiar Baig, MNA, presented the report of the Sub-Committee on “The Corporate Social Responsibility Bill, 2025”, moved by Dr Nafisa Shah, MNA. The Committee adopted the report and deferred the discussion on the report for the next meeting of the Committee.

The Committee expressed serious concern over the absence of the Secretary, Industries and Production, and deferred the agenda item relating to the new Electric Vehicle Policy.

During the meeting, Secretary Finance and Chairman SECP Saeed said that there is no mandatory provision regarding the corporate social responsibility in the world except in India. Furthermore, it would result in increasing the doing of business cost and may discourage companies. The committee was further informed that many companies do not perform CSR.

The committee members objected to their reservations while saying that one percent increase companies cost of doing business, but what about the 19 percent mandatory sale tax. On the taxation side, the government has no objection, but when we talk about welfare for the poor, there are serious objections.

Nafisa Shah said that some companies are paying even 1.5 percent CSR. The Committee adopted the report and deferred the discussion on the report for the next meeting of the Committee.

The meeting was attended by Rana Iradat Sharif Khan, Syed Samiul Hassan Gilani, Ali Zahid, Dr Nafisa Shah, Mirza Ikhtiar Baig, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Mobeen Arif, Usama Ahmed Mela, MNAs.

The meeting was also attended by Bilal Azhar Kayani, the Minister of State for Finance, Syed Rafiullah and Aliya Kamran, MNAs/movers of the starred questions. The secretaries and officers from the Finance and Revenue Divisions were also present during the meeting.

Copyright Business Recorder, 2025