Senate panel recommends 30-minute increase in business hours

The recommendation was made during a meeting of the subcommittee of the Senate Standing Committee on Finance and Revenue, chaired by Pakistan Peoples Party (PPP) Senator Talha Mahmood. The business community argued that government revenues from income tax and sales tax can only increase when businesses remain operational for longer hours.

Representatives stressed the need to gradually restore business timings to support commercial activity and economic growth. However, Power Division officials raised concerns over the impact of longer business hours on the country’s electricity supply., extending commercial timings would require an additional 600 megawatts (MW) of electricity.

The Power Division also warned that if furnace oil-based power plants have to be operated to meet the additional demand, the fuel cost of electricity could increase by around Rs5 per unit. Officials further informed the committee that Pakistan currently has only around one day’s supply of LNG available.

They warned that importing spot LNG cargoes to meet additional power requirements could make electricity even more expensive. Despite the concerns raised by the Power Division, the subcommittee recommended an initial 30-minute increase in business hours as part of efforts to gradually restore commercial activity to normal.

The meeting also reviewed several other issues affecting Pakistan’s economy and business sector, including the relocation of industries from Pakistan, Federal Board of Revenue (FBR) governance, dual citizenship among officials, industrial policy and measures to facilitate the business community. FBR officials said confidence-building measures had been taken, including the formation of joint committees with the business community.

They also said the FBR chairman would establish a camp office in Karachi during the first week of every month on the prime minister’s instructions, while a two-day camp office is also planned in Lahore. The subcommittee also recommended renegotiating an International Monetary Fund (IMF) condition concerning the phased closure of Export Processing Zones and Special Economic Zones by 2035.

The committee stressed that Pakistan’s industrial and investment interests should be taken into consideration during the negotiations. The committee also received briefings on battery energy policy, electric vehicle charging infrastructure, housing, tax-related issues and cartelization.

It further recommended introducing facial recognition technology for taxpayers whose fingerprints cannot be verified and directed the FBR and National Database and Registration Authority (NADRA) to resolve the issue on an urgent basis. The committee emphasized that a business-friendly regulatory environment is essential for attracting investment, promoting industrial development and ensuring sustainable economic growth in Pakistan.