NA Body Postpones FRDL, SOE, and Other Important Bills Until Next Meeting
ISLAMABAD – The National Assembly’s Standing Committee on Finance and Revenue on Monday postponed four important bills, including “The Fiscal Responsibility and Debt Limitation (Amendment) Bill, 2021” for further discussion thorough.
The meeting of the Standing Finance Committee was held on Monday under the chairmanship of Mr. Faiz Ullah, MP, in the Constitution Hall of the Parliament. The committee studied four important bills. However, he deferred all four bills until the next meeting. The bill titled “The Modaraba Companies (Floatation and Operations) (Amendment) Bill, 2021 (Government Bill)” was postponed to the next committee meeting as requested by the relevant department. The Committee considered the Bill titled “The Public Enterprises (Governance and Operations) Bill 2021 (Government Bill) and decided to postpone the Bill to the next meeting of the Committee.
The Managing Director (CEO), EXIM Bank, briefed the committee on the establishment, capital, purpose and power, management, accounts and finances of the bank. The bill titled “The Export-Import Bank of Pakistan Bill, 2021 (Government Bill) was also discussed and the committee decided to postpone the bill until its next meeting for the committee member’s in-depth study of the bill and his valuable input.
The Bill titled “The Fiscal Responsibility and Debt Limitation (Amendment) Bill, 2021 (Government Bill)” came before the committee and the committee decided to postpone the bill at its next meeting for further consideration.
The Fiscal Responsibility and Debt Limitation of 2005, amended in 2017, provided for a reduction in the federal budget deficit and the public debt-to-gross domestic product ratio to a prudent level through effective public debt management. The Fiscal Responsibility and Debt Limitation (Amendment) Bill 2021 proposes the following amendments: (i) limit the stock of government guarantees to 10% of GDP; (ii) publication of the Medium-Term National Macro-Fiscal Framework; (iii) institutionalize debt management functions in a single office reporting to the Secretary of Finance; (iv) allocation of additional functions to the debt office; and (v) create two additional management positions within the Debt Office. The proposed amendments will strengthen the Debt Office with the mandate and resources for effective planning and execution of government debt management functions, maintained the bill’s sponsor, the finance minister.
Amending the Fiscal Responsibility and Debt Limitation Act (FRDLA) is one of the conditions of the World Bank’s $350 million loan program. According to the report, the World Bank has recently requested Pakistan to comply with four prior actions, including consolidating the center and provinces under a General Sales Tax (GST) regime and amending the Fiscal Responsibility and Taxation Act. debt limitation (FRDLA) by Parliament during this fiscal year.
Members/MPs Mr. Sadaqat Ali Khan Abbasi, Makhdoom Syed Sami-ul-Hassan Gillani, Mr. Jamil Ahmed Khan, Mr. Faheem Khan, Dr. Ramesh Kumar Vankwani, Chaudhary Khalid Javed, Mr. Ali Pervaiz, Dr. Aisha Ghous Pasha, Dr. Nafisa Shah, Syed Naveed Qamar, Ms. Hina Rabbani Khar and senior officials from Ministry of Finance, Ministry of Law and Justice, Ministry of Commerce, Securities and Exchange Commission of Pakistan, EXIM Bank attended the meeting.