Senate Committee Discusses Solar Panel Policy, Rightsizing, and Circular Debt Crisis
The Senate Finance Committee discussed solar panel trade transparency, government rightsizing, and the circular debt restructuring plan, calling for urgent reforms and clearer policy directions.
🟦 Reporter: Imtiaz Ali Abbasi, Chief Reporter Islamabad | April 23, 2025
Posted by: Watts News, the Largest English Digital News Network Pakistan
Islamabad—In-depth discussions held on energy imports, economic reform, and government restructuring
The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, convened at Parliament House, Islamabad, on Wednesday to review critical legislative, economic, and policy issues impacting Pakistan’s financial landscape. The meeting featured extensive deliberations on solar panel imports, federal rightsizing policies, and the restructuring of circular debt in the power sector.
Solar Panel Invoicing: One Month Deadline for Action
The Committee officially adopted the Sub-Committee’s report on resolving solar panel-related issues. A key concern raised was the ongoing over-invoicing and under-invoicing practices within the industry. The Committee recommended that both the State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR) finalize a future course of action within one month to streamline procedures and enforce transparency.
Income Tax Amendment Bill 2025 Referred to NA Speaker
A Private Member’s Bill, titled “The Income Tax (Amendment) Act, 2025”, was introduced by Senator Zeeshan Khanzada. The Committee agreed to refer the matter to the Speaker of the National Assembly to determine whether the legislation qualifies as a Money Bill.
Concerns Over Rightsizing Policy and Government Downsizing
The federal government’s rightsizing policy came under scrutiny as members raised concerns over its transparency and scope. Senator Sherry Rehman questioned whether the policy impacts only vacant positions or also affects serving contract employees. She emphasized the need for a macro-level analysis of its financial and HR consequences.
Committee Chair Senator Mandviwalla echoed the sentiment, calling for clarity on department mergers and affected personnel. Officials responded that data compilation is ongoing with a final report expected by June 30, 2025.
Circular Debt: Rs. 1.275 Trillion Loan to Service Power Sector Deficit
The State Bank’s Deputy Governor briefed the Committee on the government's plan to raise Rs. 1.275 trillion through banks to manage the mounting circular debt in the power sector. However, Senator Shibli Faraz criticized the move, stating that the strategy of borrowing to pay existing debt only transfers the financial burden onto citizens without addressing structural flaws.
He warned that unless fundamental reforms are implemented, the circular debt issue would remain unresolved.
Key Attendees
The meeting was attended by:
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Senator Sherry Rehman
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Senator Shibli Faraz
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Senator Fesal Vawda
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Senator Manzoor Ahmed
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Special and Additional Secretaries of Finance
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Chairman FBR
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Deputy Governor SBP
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Additional Secretary, Cabinet Division
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Other senior officials from relevant departments
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Senate Committee on Finance, Solar Panel Imports, Circular Debt Crisis, Pakistan Economic Policy, Income Tax Amendment 2025, Watts News
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