339th Session of the Senate: Recommendations on Budget Proposal

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 Highlights

  1. The Senate met for 25 hours and 25 minutes over 10 Sittings in the 339th Session
  2. The Finance Bill 2024 was discussed for 17 hours and 38 minutes over 6 sittings
  3. Longest sitting lasted 7 hours and 58 minutes while shortest sitting lasted 17 minutes
  4. 4 Government Bills were passed during the Session
  5. 3 ordinances laid during the Session

Summary

The 339th Session of the Senate mainly revolved around discussion on the Finance Bill which was discussed for 17 hours and 38 minutes over 6 sittings. Three (3) ordinances were laid in the Senate while four (4) Government Bills were passed. The session also saw passage of two (2) resolutions.

Working Hours

The 339th session of the Senate began on June 07, 2024 and was prorogued on June 25, 2024. Ten (10) sittings were convened in the session spanning 10 days for 25 hours and 25 minutes with an average duration of 2 hours and 32 minutes per sitting.

The longest sitting of the session was held on Thursday, June 13, 2024 when the House was adjourned after meeting for 7 hours and 58 minutes. The shortest sitting was held on Wednesday, June 12, 2024 when the House was adjourned after meeting for only 17 minutes. The Schedule of the Sittings is given in Appendix A.

Figure 1: Working Hours

Agenda of the Session

89% of the agenda items were disposed of during the session. The agenda items left over were included the Presidential address and some calling attention notices. Details of the agenda items left over are given in Appendix B.

Figure 2: Agenda Items Left over

Quorum

Quorum was pointed out thrice during the 339th session of the Senate and all the 3 sittings were adjourned due to lack of quorum. The sittings adjourned were on June 10, 2024, June 11, 2024 and on June 20, 2024. On June 10 and June 11, 61 Senators were marked as present in attendance, while on June 20, 49 Senators were marked as present in attendance.

Attendance

On average, sixty-five (65) Senators were recorded as present during the session.

Senator Syed Shibli Faraz, (KP, PTI), Leader of the Opposition in the Senate, attended 10 or 100% sittings. Senator Mohammad Ishaq Dar, Leader of the House (ICT, PML-N), attended 5 or 50% sitting of the 339th session.

Figure 3: Attendance

Top 5 Vocal Senators

Senator Syed Shibli Faraz (KP, PTI), Leader of the Opposition, was the most vocal Senator during the session with a recorded talk time of 1 hour and 59 minutes. He was followed by Senator Aimal Wali Khan (Balochistan, ANP), who spoke for 1 hour and 08 minutes. Senator Saifullah Abro (Sindh, PTI) spoke for 1 hour. Senator Azam Nazeer Tarar (Punjab, PML-N), Federal Minister for Law, Justice, Parliamentary Affairs, and Human Rights, spoke for 57 minutes. Senator Sherry Rehman (Sindh, PPPP) spoke for 48 minutes.

Figure 4: Top 5 Vocal Senators

Legislation

Four (4) Government Bills were passed during the Session. Nine (9) Private Member Bills were introduced and referred to Standing Committees. Additionally, three (3) Ordinances were also laid during the session.

Figure 5: Legislation

The 339th Session of the Senate mainly featured discussion on recommendations by the Senate on the Finance Bill, 2024. The motion was moved in the House by Senator Muhammad Aurangzeb (Punjab, PML-N), Minister for Finance and Revenue, on June 12, 2024. The report was presented by Senator Saleem Mandviwalla (Sindh, PPPP), Chairman of the Standing Committee on Finance and Revenue on June 24, 2024. Senators from the opposition benches severely criticized the budget and recorded their protest over their recommendations not being included.

Government Bills Passed during the 339th Session

The Pakistan Postal Services Management Board (Amendment) Bill, 2024 was introduced in the Senate by Senator Azam Nazeer Tarar (Punjab PML-N), Federal Minister for Law, Justice, Parliamentary Affairs, and Human Rights, on June 11, 2024 and passed without being referred to a Standing Committee. The Bill had proposed that amendments may be made in the Pakistan Postal Services Management Board Ordinance, 2002 for smooth running of official business of Pakistan Post Office Department after the promulgation of the State-Owned Enterprises (Governance & Operations) Act, 2023. It received assent by the President on June 14, 2024.

The Pakistan National Shipping Corporation (Amendment) Bill, 2024 was introduced on June 11, 2024 and passed without being referred to Standing Committee. The Bill had proposed that amendments may be made in Pakistan National Shipping Corporation Ordinance, 1979 for smooth running of official business of Pakistan National Shipping Corporation, Karachi after the enactment of the State-Owned Enterprises (Governance & Operations) Act, 2023. It received assent by the President on June 14, 2024.

The Pakistan Broadcasting Corporation (Amendment) Bill, 2024 was also introduced in the House on June 11, 2024 and passed without being referred to a Standing Committee. The bill aimed to update the PBC’s governance in line with the SOE Act, 2023. It increased independent directors from four to nine, ensuring they outnumbered ex-officio members. This change expanded representation to Islamabad, Gilgit-Baltistan, and Azad Jammu and Kashmir. The Board now has authority in appointing the Director General, enhancing transparency and efficiency in PBC’s operations. It received assent by the President on June 14, 2024.

The National Highway Authority (Amendment) Bill, 2024 was also introduced on June 11, 2024 and passed without being referred to Standing Committee. The bill had proposed that amendments may be made in the NHA Act, 1991 for smooth running of official business of the National Highway Authority (NHA). The bill received assent by the President on June 14, 2024.

Ordinances

Three (3) Ordinances were laid during the 339th session of the Senate.

The State Owned-Enterprises (Governance and Operations) (Amendment) Ordinance, 2024. (Ordinance No. VII of 2024 was laid in the Senate on June 25, 2024. The ordinance was promulgated on June 5, 2024 merely one day before convening of the session of the National Assembly and two days before the session of the Senate. The ordinance further amended the State-Owned Enterprises (Governance & Operations) Act, 2023 and stated that it aimed to reconstitute the Boards of SOEs to better align with the reform initiatives aimed at restructuring and transformation as well as privatization of certain entitles entities. Additionally, this ordinance authorized the government to remove independent directors from state-owned enterprises (SOEs) and amended the SOE Act 2023 to ease this process by eliminating the need for an inquiry and allowing removal based on the recommendations by the committee. It also revised Section 4 to narrow the SOE policy scope and added Section 10(3A) for evaluating directors’ performance. These changes aimed to resolve issues in overhauling the boards of eight DISCOs, which faced resistance and legal challenges due to their statutory tenures as well as address governance concerns amid substantial financial losses and alleged political influence in prior appointments.

The Elections (Amendment) Ordinance, 2024 (Ord. V of 2024), promulgated on May 27, 2024, was laid in the Senate on June 11, 2024. It aimed to restore the original provision of Section 140, allowing retired Judges of High Courts to be eligible for appointment as members of Election Tribunals to hear election petitions concerning the National Assembly, Senate, and Provincial Assemblies. The amendment gave the Election Commission of Pakistan (ECP) authority to appoint retired judges to election tribunals without consulting the Chief Justice of the relevant High Courts. Previously, Section 140 of the Election Act 2017 required that only serving judges could be appointed to election tribunals and this process had to involve consultation with the Chief Justice. The amendment has faced criticism from the PTI and a petition has been filed in the Lahore High Court against it.[1]

The National Accountability (Amendment) Ordinance, 2024 (Ord. VI of 2024), which was promulgated on May 27, 2024, was laid in the Senate on June 11, 2024. The Ordinance has increased the enhancement of remand period from fourteen (14) to forty (40) days under sub-section (d) of section 24 of the Ordinance. The ordinance was first laid in the National Assembly on June 6, 2024.

Resolutions

Two (2) Resolutions were adopted by the Senate during the 339th Session.

Senator Samina Mumtaz Zehri (Balochistan, BAP) moved a resolution recognizing that Balochistan’s railway line and infrastructure are over 100 years old and in a state of disrepair, and considering the inadequate railway network in the province, alongside the imperative to ensure equitable benefits across all districts from projects like CPEC, the House recommends immediate allocation of special funds under PSDPs. These funds are essential for constructing new railway lines and necessary infrastructure in Balochistan, aiming to connect and enable all districts to fully benefit from provincial development projects. This resolution was adopted unanimously by the House on June 10, 2024.

Senator Sherry Rehman (Sindh, PPPP) moved a resolution condemning the mob lynching incidents in Swat and Sargodha involving individuals accused of religious offenses. Emphasizing that the right to life, enshrined as the most fundamental right in the Constitution of Pakistan, the House called upon the Federal and Provincial Governments to prioritize the safety and security of all residents, particularly religious minorities and vulnerable communities. The House urged the Governments of Khyber Pakhtunkhwa and Punjab to take immediate action to identify, investigate, and prosecute those involved in these heinous crimes without delay. Additionally, the House expected that the courts handling these cases will ensure timely delivery of justice in accordance with the law. This resolution was adopted on June 24, 2024 with majority. Members belonging to the opposition were busy protesting near the speaker’s dais, though without any reservation on the resolution. Despite their protest, the resolution was moved and passed by the treasury benches.[2]

Analysis

Senator Muhammad Aurangzeb (Punjab, PML-N, Minister for Finance and Revenue, moved the motion to make recommendations to the National Assembly on Finance Bill, 2024-2025 on June 12, 2024.[3] The report was presented in the house by the Saleem Mandviwalla (Sindh, PPPP) Chairman, Standing Committee on Finance and Revenue on June 24, 2024.

The Standing Committee on Finance and Revenue proposed a comprehensive set of 128 recommendations to make to the National Assembly for inclusion in the Finance Bill 2024, including nine (9) recommendations focused on the Public Sector Development Programme (PSDP) for 2024-2025.[4]

The recommendations covered a range of areas: Sixty-nine (69) general budget recommendations, eight (8) related to the Customs Act, twenty three (23) concerning the Sales Tax Act, fifteen (15) for the Income Tax Ordinance, three (3) for the Federal Excise Act, and one (1) on Abandoned Properties.

Speaking on the floor of the Senate, the Standing Committee’s Chairman, Senator Saleem Mandviwalla (Sindh, PPPP) said that the committee was allotted only six days instead of the usual 14 to review the budget and prepare recommendations for the National Assembly.

Senator Saleem Mandviwalla (Sindh, PPPP) highlighted that feedback was given by 32 associations, chambers of commerce, and civil society representatives across various sectors, including education, healthcare, retail, and automotive. He pointed out that of the Rs. 18.9 trillion budget for 2024-2025, Rs. 9.75 trillion is earmarked for debt repayments, and Rs. 2.63 trillion will be borrowed to cover the deficit.

He criticized the current system for leaving Rs. 2.9 million non-filers unaddressed and emphasized the need to include them in the tax net rather than imposing additional burdens on the poor. The committee rejected proposed tax increases on low-tier salaries and advocated for special allowances for disabled individuals employed in public sectors.[5] He also condemned new taxes on schoolbooks and stationery, which were widely opposed by the public and stakeholders, and supported their removal.

The Senate also proposed to increase the minimum wage from Rs. 37,000 to Rs. 45,000. Additionally, it suggested providing disabled individuals with an extra allowance equivalent to 100% of their basic pay and called for measures to broaden the tax base while reducing the tax burden on the salaried class.[6]

The Senate also recommended the withdrawal of the 10% GST on newsprint imports and the reinstatement of zero-rated status for the print industry. It advocated for the removal of sales tax on poultry feed to avoid higher prices for consumers and the reversal of the recent increase in the petroleum levy.

In an effort to enhance economic documentation, the Senate proposed that credit or debit card transactions be mandated for purchases above Rs. 35,000. Furthermore, it suggested implementing a uniform sales tax rate on solar industry parts, regardless of whether they were imported or locally produced.

On the issue of sales tax collections, the Senate argued against a proposed Rs. 1.3 trillion increase, recommending a reduction to avoid undue pressure on consumers. It also called for a 50% cut in indirect taxes, including sales tax, excise duty, customs duty, and service tax, to lower the cost of essential goods and food items for the poor. Conversely, it proposed increasing direct tax revenues by broadening the tax net to include major industries such as sugar, cement, tobacco, and fertilizers.

Regarding import duties, the Senate suggested applying concessions to vehicles of 600cc rather than those valued above US $ 50,000. It also proposed maintaining zero-rated exemptions for sectors like pharmaceuticals, books, newspapers, agriculture produce, and medical supplies.

To reduce government expenditures, the Senate recommended renegotiating agreements with Independent Power Producers (IPPs) to eliminate the Rs. 2.1 trillion capacity payments for 2024. Additionally, it urged efforts to address tax evasion, which amounted to approximately Rs. 5.8 trillion annually, by including those involved in evasion in the tax net.

The Senate further advocated for a complete ban on smuggling to prevent revenue loss and proposed reviving GST exemptions for medical equipment and supplies used in charitable hospitals. For Balochistan’s development, it recommended new programs and scholarships, alongside allocating funds for energy projects to address power shortages in the province.

Lastly, the Senate proposed reinstating local supply tax exemptions and reducing sales tax rates for FATA/PATA regions until June 30, 2025. It also suggested exempting residents of these regions from advance tax on distribution, dealers, and wholesalers.

Criticism on the Budget Proposal

Opposition members voiced their protest in the House, condemning what they termed an anti-people budget with proposed additional taxes that would exacerbate public suffering.

Senator Syed Shibli Faraz (KP, PTI), Leader of the Opposition, criticized the tax proposals, arguing that imposing more taxes would worsen the plight of people already burdened by high inflation. He clarified that his remarks were a protest against the government’s plan to impose further taxes, rather than a budget speech. He denounced the government’s actions as high-handed, pushing the populace into dire straits.[7] Senator Faraz described the current economic situation as the worst in the country’s history over the last 50 years, promising detailed scrutiny of the budget, taxes, and financial figures. He demanded that the finance minister justify why citizens were being subjected to such hardships, attributing the crisis to incompetence and mismanagement spanning three decades. “The budget reflects a government that lacks legitimacy. The opposition views the budget as a killer poison,” he stated. He criticized the disparity between “the elite, illegitimate government and the salaried class”, who are facing increased taxes. “On one hand, they aim to boost exports, but on the other, they impose taxes, attacking IT (information technology) exports,” he noted. Senator Faraz took issue with the PPP’s policies, labelling them as “MQM-2” for allegedly using blackmail to advance their interests, reminiscent of the Muttahida Quami Movement’s past tactics of protests and threats to withdraw from the PTI alliance.[8]

Senator Saifullah Abro (Sindh, PTI) criticized the government for claiming 26% inflation while increasing salaries by only 25%. He called for an audit of the entire 2024 elections, starting with KP to address allegations of rigging. Senator Saifullah Abro questioned why funds were not allocated for the M-6 Motorway and Pindi Kharian projects. He also demanded a transparent process for the privatization of the First Women’s Bank. “The bank was a gift of the late Benazir Bhutto to the women of the country its privatisation should be open,” he said.

Senator Aimal Wali Khan (Balochistan, ANP) argued that the budget imposed excessive taxes. He sarcastically suggested the government should also impose “tax on breathing, tax on death, tax on marriage and tax on childbirth.” He criticized the budget as being dictated by the IMF, offering no relief to the nation, and objected to the 17.6% increase in the defence budget. He proposed eliminating all privileges for the President, Prime Minister, ministers, and lawmakers.

Senator Dinesh Kumar (Balochistan, BAP) noted the country’s deficit and the government’s reliance on borrowing to cover it. “Even the federal government is giving money to the provinces on interest,” he alleged.

Senator Aun Abbas, (Punjab, PTI) criticized the highest taxes imposed on the salaried class and the increase in the petroleum levy from Rs. 60 to Rs. 80. “Will the country be run by selling PIA (Pakistan International Airlines), Pakistan Steel Mills, and the Pakistan Railways?” he questioned.

Senator Taj Haider (Sindh, PPPP) said that the failed economic policies adopted under IMF pressure. He warned that privatization led to increased unemployment, reiterating the “outdated mantra” that “the government should not do business.”

However, Senator Bushra Anjum Butt, (Punjab, PML-N) praised the government for presenting “a good budget” and making tough decisions. She described the budget as well-balanced, noting that it provides parallel solutions for every problem it addresses. She praised its proactive approach and emphasized the need for act as a nation rather than mere criticism.[9]

Senator Nasir Mehmood Butt, (Punjab, PML-N) remarked that despite government lawmakers addressing their matters, the opposition continued to create disturbance during their speeches. Responding to the criticism, he pointed out that that inflation had started increasing from 2018 and emphasized that it would require time to bring it under control.

Ten minutes were spent on a calling attention notice on statement by the DG Immigration and Passports regarding the proposed “ex-husband category” in passport data for women. Senator Samina Mumtaz Zehri (Balochistan, BAP) criticized this stance arguing that it conflicts with the NADRA’s provision allowing women to retain their father’s name on their CNIC and is both unconstitutional and discriminatory against divorced women. She called for the policy’s withdrawal, deeming it outdated and contrary to international norms. Senator Syed Shibli Faraz (KP, PTI), Leader of the Opposition, supported Senator Zehri’s stance, stressing the need for legislative action on women’s issues and recommending that the Committee for Interior review the family laws and proposed amendments. Chairman Senate Syed Yousaf Raza Gillani (ICT, PPPP) agreed to refer the matter to the committee for stakeholder consultation, and Senator Atta ur Rehman (Balochistan, JUIP) requested that the committee also seek the Council of Islamic Ideology’s perspective.[10]

Senator Aon Abbas (Punjab, PTI) introduced the Constitution (Amendment) Bill, 2024 which seeks to amend various articles of the Constitution to create a new province. He emphasized that the process has been underway for nearly 12 years and called on the PML-N and the PPPP to support the bill. Senator Azam Nazeer Tarar (Punjab, PML-N) criticized the PTI for politicizing the South Punjab province issue, pointing out that they did not address it while in power. Chairman Senate Syed Yousaf Raza Gillani (ICT, PPPP) referred the bill to the standing committees for further discussion.[11]

Time consumed on Discussion of Policy Issues

The quality of the time used during the 339th Senate session can be gauged by analysing the time consumed on discussing key issues of democratic governance. The time dedicated to discussion on policy issues was 13 hours and 41 minutes. The maximum time consumed in discussion was to make recommendations to the National Assembly on Finance Bill, 2024-2025 for 11 hours and 16 minutes.

It must be noted that PILDAT has classified that a policy issue is such that involves any recommendation on devising a policy. Any discussion on an issue that does not go beyond mere criticism or highlighting a concern does not fall into policy issue and is treated as discussion or time spent on non-policy issues.

References

  1. Malik Asad, “PTI runners-up move court against election ordinance,” Dawn News online, June 6, 2024, accessed July 1, 2024. https://www.dawn.com/news/1838051. ↑

  2. Amir Wasim, “Opposition brushed aside resolution condemning mob lynching on under garb of protest: Tarar” Associate Press of Pakistan online, June 24, 2024, accessed July 1, 2024. https://www.app.com.pk/national/opposition-brushed-aside-resolution-condemning-mob-lynching-on-under-garb-of-protest-tarar/. ↑

  3. Report of the Senate Standing Committee on Finance and Revenue on the Finance Bill, 2024, accessed July 5, 2024. https://senate.gov.pk/uploads/documents/1719297776_241.pdf ↑

  4. Sohail Sarfraz & Zaheer Abbasi, “Finance Bill: Senate sends 128 suggestions to NA,” Business Recorder online, June 25, 2024, accessed July 9, 2024. https://www.brecorder.com/news/40309647/finance-bill-senate-sends-128-suggestions-to-na. ↑

  5. Shahbaz Rana, “Senate rejects tax hikes for workers” The Express Tribune online, June 25, 2024, accessed July 09, 2024. https://tribune.com.pk/story/2473651/senate-rejects-tax-hikes-for-workers#google_vignette. ↑

  6. Finance Bill: Senate proposes 128 recommendations to NA, Ministry of information and Broadcasting online, June 24, 2025, accessed July 09, 2024. https://moib.gov.pk/News/62506#:~:text=Government%20of%20Pakistan&text=The%20Senate%20has%20proposed%20128,the%20recommendations%20before%20the%20House. ↑

  7. Iftikhar A. Khan, “Budget 2024-25: PTI stages protest in Senate against new tax proposals” Dawn online, June 13, 2024, accessed July 6, 2024. https://www.dawn.com/news/1839556. ↑

  8. Iftikhar A. Khan, “Political acrimony overshadows budget discussion in Senate,” Dawn News online, June 14, 2024, accessed July 5, 2024. https://www.dawn.com/news/1839783. ↑

  9. Naeem Asghar, “Budget comes under heavy battering,” The Express Tribune online, June 14, 2024, accessed July 09, 2024. https://tribune.com.pk/story/2471567/budget-comes-under-heavy-battering. ↑

  10. Passport policy for married, divorced women amendable under IHC orders: Riaz Pirzada, The Associate Press of Pakistan online, June 11, 2024, accessed July 10, 2024. https://www.app.com.pk/national/passport-policy-for-married-divorced-women-amendable-under-ihc-orders-riaz-pirzada/. ↑

  11. Iftikhar A. Khan, “Senate notifies all standing committees after rare govt, opposition amity” Dawn News online, June 11, 2024, accessed July 16, 2024. https://www.dawn.com/news/1839153. ↑