ISLAMABAD: Despite official announcements made during annual budgets, the government-mandated minimum wage remains widely unimplemented even within its own ministries and divisions.
This startling revelation came to light during a meeting of the National Assembly Standing Committee on Finance held on Wednesday. Committee member Agha Rafiullah disclosed that several government departments, including the Ministry of Overseas Pakistanis, were failing to pay the officially set minimum wage of Rs. 37,000. He pointed out that the ministry was paying only Rs. 28,000, citing restrictions imposed by its board.
The meeting was chaired by MNA Naveed Qamar, with Finance Minister Muhammad Aurangzeb attending virtually to brief members on his recent visit to the United States. He informed the committee that international institutions had expressed satisfaction with Pakistan’s ongoing structural reforms.
On the issue of wage non-compliance, the Ministry of Finance stated that the Ministry of Overseas Pakistanis had claimed to be adhering to the minimum wage law. Chairman Qamar expressed concern over the conflicting statements and emphasized the need for accurate reporting to Parliament.
Agha Rafiullah stressed that the issue extended beyond the private sector, affecting government departments that are legally bound to follow wage laws. In response, the Chairman directed the Additional Secretary of Finance to ensure strict implementation of the minimum wage policy across all ministries and divisions. He also advised Rafiullah to submit supporting evidence to the Finance Secretary to enable appropriate action. The matter was deferred for discussion in the committee’s next meeting.
Chairman Qamar also instructed that the data provided by Rafiullah be shared with both the Ministry of Finance and the media. Committee members suggested transitioning from a minimum wage model to a living wage framework. The Chairman proposed that a private member submit a bill to initiate this change.
During the meeting, the Finance Minister mentioned that budget proposals from chambers of commerce had been under review since February, with 95% of submissions already received. He also informed the committee that policy matters related to the Federal Board of Revenue (FBR) had been shifted to the Ministry of Finance, and the Director General of Tax Policy now reports directly to the Finance Minister.
MNA Nafisa Shah introduced the Corporate Social Responsibility Bill, 2025, which was referred to a newly formed subcommittee led by Mirza Ikhtiar Baig. The subcommittee will include members Arshad Vohra and others for further review.
The Finance Minister assured the committee that he would take up the issue of wage non-compliance with relevant ministers and seek explanations from defaulting departments. The committee requested the Ministry of Finance to submit a detailed compliance report within 30 days.
Earlier, the Finance Minister briefed the committee on his visit to the U.S., high-level meetings, and preparations for the upcoming budget. Chairman Qamar welcomed the initiative, noting that it marked the first time the Standing Committee would formally deliberate on the budget, a process previously confined to the National Assembly sessions.
The committee also considered The Tax Laws (Amendment) Bill, 2024 and recommended that it, along with relevant recommendations from various parliamentary bodies, be incorporated into the Finance Bill 2025–26. Additionally, it reviewed and endorsed The Income Tax (Amendment) Bill, 2024 for passage by the National Assembly.
On the Corporate Social Responsibility Bill, 2025, members unanimously appreciated the proposal, forming a subcommittee for in-depth discussion and stakeholder engagement.
The committee also discussed an inquiry into the constitutional validity of Section 99D of the Income Tax Ordinance, 2001, following a reference from MNA Syed Hafeezuddin.
Representatives from the Pakistan Dairy Association presented their proposals for tax reforms. The Chairman directed the Ministry of Finance to consider offering maximum feasible relief to support the sector.
The President of Zarai Taraqiati Bank Limited (ZTBL) gave a detailed briefing on the bank’s performance. The committee criticized the bank’s focus on profits over farmer support and urged it to expand its agricultural lending base. It recommended introducing farmer-friendly credit cards with installment incentives and directed the bank to provide a province-wise loan disbursement report. Members also raised concerns over potential privatization of ZTBL.
The committee unanimously approved the minutes of its previous meeting.
Attendees included MNAs Rana Iradat Sharif Khan, Zeb Jaffar, Muhammad Usman Awaisi, Kesoo Mal Khel Das, Dr. Mirza Ikhtiar Baig, Dr. Nafisa Shah, Ali Jan Mazari, Muhammad Jawed Hanif Khan, Arshad Abdullah Vohra, Muhammad Mobeen Arif, Usman Mela, Muhammad Ali Sarfraz, and Shahida Begum. Finance Minister Muhammad Aurangzeb, FBR Chairman, and other senior officials also attended.
