Naveed Qamar calls for coordinated economic response to external shocks, for fiscal stability

The Chairman, Standing Committee on Finance and Revenue, Syed Naveed Qamar, on Thursday called for a coordinated economic response to external shocks and accelerated structural reforms for fiscal stability

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 30th Apr, 2026) The Chairman, Standing Committee on Finance and Revenue, Syed Naveed Qamar, on Thursday called for a coordinated economic response to external shocks and accelerated structural reforms for fiscal stability.

The Chairman of the Standing Committee recommended that the Ministry of Finance provide quarterly updates to the Committee on the implementation of the Fiscal Responsibility and Debt Limitation Act.

The 24th meeting of the Standing Committee on Finance and Revenue was held today at the Parliament House, Islamabad, under the chairmanship of Syed Naveed Qamar, MNA.

The Committee was briefed by senior economists and public financial management specialists on the potential economic implications and spillover effects of the ongoing Middle East crisis on Pakistan’s economy, trade, and external sector.

It was highlighted that heightened geopolitical tensions may significantly disrupt global oil markets, shipping routes, and supply chains, thereby transmitting inflationary pressures into the domestic economy. The briefing further noted that inflation remains broad-based, with particularly sharp impacts on food, energy, and transport sectors. Persistent energy shortages were also identified as a key constraint, undermining industrial productivity and transport efficiency, increasing the cost of doing business, and slowing overall economic growth.

The Committee was further apprised that rising international oil and petroleum prices are adding pressure on domestic fuel costs and the inflation outlook. Key concerns were raised regarding external sector vulnerabilities, including an increasing import bill, widening trade imbalance, and sustained pressure on foreign exchange reserves. In addition, rising freight and logistics costs are adversely affecting trade competitiveness, alongside mixed export performance, stagnation in non-tax revenues, and shortfalls in tax collection.

The briefing also covered austerity measures and their fiscal implications, including expenditure rationalization efforts and expected savings, while emphasizing the cumulative impact of these challenges on fiscal stability and the medium-term economic outlook.

Syed Naveed Qamar sought clarification on several key issues arising from the briefing. He inquired about the specific policy measures the Government intends to adopt to cushion the economy from the anticipated spillover effects of the Middle East crisis, particularly in stabilizing inflation in essential sectors such as food and energy.

He also asked about immediate steps being taken to address mounting external sector pressures, including rising import bills, escalating freight costs, and the resulting strain on foreign exchange reserves.

The Chairman of the Standing Committee sought details on the effectiveness of ongoing austerity and revenue enhancement measures in narrowing the fiscal deficit, as well as the structural reforms being considered to strengthen tax collection and improve non-tax revenue performance on a sustainable basis.

The Committee observed that the ongoing Middle East crisis poses significant risks to Pakistan’s macroeconomic stability through potential disruptions in global oil markets, supply chains, and trade routes, contributing to inflationary pressures, rising import and freight costs, and continued strain on foreign exchange reserves.

It further noted that persistent energy shortages are undermining industrial productivity and economic growth, while fiscal challenges, including shortfalls in tax collection, stagnant non-tax revenues, and limited fiscal space under austerity measures, continue to constrain policy options.

The Chair emphasized the need for a coordinated and proactive policy response, alongside sustained structural reforms in taxation, energy efficiency, and trade facilitation to strengthen resilience and ensure long-term macroeconomic stability.

The Committee considered “The Netting of Financial Arrangements Bill, 2025” (Government Bill) and recommended that the Bill, as amended, be passed by the National Assembly.

The Committee also considered “The Fiscal Responsibility and Debt Limitation (Amendment) Act, 2026” (Government Bill) and recommended that the Bill, as amended, be passed by the National Assembly.

The Committee recommended that the Ministry of Finance provide quarterly updates to the Committee on the implementation of the Fiscal Responsibility and Debt Limitation Act. The Committee approved the minutes of its previous meeting. It was further decided that the next meeting of the Committee will be held on Thursday, May 7, 2026.

The meeting was attended by Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Ms Zeb Jaffar, Ms Hina Rabbani Khar, Dr Mirza Ikhtiar Baig, Ms Sharmila Faruqi, Mr Muhammad Jawed Hanif Khan, Mr Arshad Abdullah Vohra, and Ms Shahida Begum, MNAs.

The meeting was also attended by Bilal Azhar Kayani, Minister of State for Finance and Revenue, along with senior officers of the Finance Division and the State Bank of Pakistan.