The National Assembly Standing Committee on Finance and Revenue has cautioned that any special fiscal support for Pakistan International Airlines alone could distort competition in the aviation market, and has urged the government to extend airline relief to all eligible operators on equal terms.
Meeting at Parliament House during its clause-by-clause review of the Finance Bill, 2026, the committee said the revival of the national carrier should not come at the cost of fairness for other domestic airlines, many of which are also under financial and operational pressure. Members stressed that fiscal policy must avoid even the perception of favoritism and should be built on transparent, sector-wide principles.
Committee Chairman Syed Naveed Qamar said government support must remain fair and consistent, adding that a balanced framework would strengthen competition, improve investor confidence and support a more resilient aviation sector. The committee recommended that equivalent fiscal concessions and incentives be made available to all qualifying airline operators from July 1, 2027, so the market can function on a level playing field.
Alongside the aviation debate, the committee approved several safeguards in the Finance Bill, 2026 aimed at improving due process, accountability and taxpayer protection. One key amendment requires a Special Judge to record written reasons before issuing a freezing order against property held by a third party, while also giving the affected person a chance to be heard. An exception was retained for urgent cases where action is needed to prevent assets from being transferred or concealed.
The committee also allowed the Independent Case Scrutiny Committee to co-opt a Chartered Accountant as a non-voting member in technically complex matters, saying expert input can help improve decisions in difficult tax and financial cases. Members further endorsed provisions that exclude the approval period from statutory limitation calculations and removed redundant clauses to make the law clearer and easier to apply.
Taxation of mobile phones drew strong objection from members, who argued that smartphones are now essential tools rather than luxury goods. They said higher taxes on selected imported models could hurt students, freelancers, small businesses and workers who depend on affordable devices for education, payments, e-commerce, jobs and access to information. The committee called for rationalized taxes, especially on entry-level and mid-range phones, to support digital inclusion and Pakistan’s broader Digital Pakistan goals.
The steel sector was also examined in detail, with officials explaining that electricity consumption benchmarks of 700 units per metric ton for steel melting and 110 units per metric ton for re-rolling are written into law and tied to Pakistan Bureau of Statistics data. Members asked for further clarification, saying tax rules must be scientific, objective and consistently applied to avoid confusion and unfair treatment.
Syed Naveed Qamar emphasized that lawmaking should not be rushed and said accuracy must come before speed. Members warned that last-minute changes without technical scrutiny can weaken legislation and create implementation problems. Over several sittings, the committee received briefings from the Federal Board of Revenue, Ministry of Finance, National Tariff Commission, Ministry of Industries and other stakeholders, reviewing proposals on income tax, sales tax, customs, federal excise, tariff reforms, petroleum levy, digital taxation, banking data sharing and compliance mechanisms.
The committee said fiscal policy should broaden the tax base rather than increase pressure on compliant taxpayers, while also protecting privacy, supporting business confidence and encouraging long-term economic growth. It concluded its review by reaffirming its commitment to fairness, transparency and good governance, saying a balanced Finance Bill is essential for taxpayer confidence and Pakistan’s economic stability.
During the proceedings, Dr. Sharmila Faruqui submitted a note of dissent on electric vehicle policy, while Muhammad Javed Hanif raised objections to the taxation structure on imported mobile phones. The meeting was attended by members including Rana Iradat Sharif Khan, Ali Zahid, Syed Sami ul Hassan Gillani, Bilal Farooq Tarar, Muhammad Usman Awaisi, Dr. Nafisa Shah, Hina Rabbani Khar, Dr. Mirza Ikhtiar Baig, Arshad Abdullah Vohra and Shahida Begum, along with senior officials from the finance and commerce wings and the Federal Board of Revenue.
