Interview with Senator Saleem Mandviwalla, Chairman of the Senate Standing Committee on Finance and Revenue
PAGE: Tell me something about yourself, please:
Senator Saleem Mandviwalla: I have been associated with the public service, finance, taxation and economic policymaking for decades. Throughout my Parliamentary career, I have had the privilege of serving in many key positions, including Federal Minister for Finance, Chairman of the Board of Investment, Deputy Chairman of the Senate, and Chairman of the Standing Committees and the Chief Whip of the Senate. Currently, I have the honour of serving as Chairman of the Senate Standing Committee on Finance & Revenue, where my role is to ensure effective oversight of the fiscal policies, taxation measures, and economic reforms.
Throughout my political journey with the Pakistan Peoples Party (PPP), I have remained committed to the vision of Shaheed Zulfiqar Ali Bhutto and Shaheed Mohtarma Benazir Bhutto, who believed that economic growth must be accompanied by the social justice. The PPP has always stood for inclusive development, strengthening democratic institutions and protecting the interest of the working class, small businesses, and farmers.
In the current parliamentary environment, there is greater engagement by lawmakers in economic matters. The Senate Standing Committee on Finance & Revenue has been actively interacting with stakeholders, business representatives, economists and government officials to ensure that fiscal policies are practical, transparent and in the national interest. My objective remains to contribute towards an economy that is stable, inclusive and capable of generating opportunities for future generations.
PAGE: Having listened to the Budget Speech, what is your take on the role of the IMF?
Senator Saleem Mandviwalla: IMF remains an important partner for Pakistan, especially in maintaining the macroeconomic stability and restoring confidence in the economy. The recent improvement in foreign exchange reserves, inflation trends and overall fiscal management has largely been linked to the implementation of economic stabilization measures under the IMF programme. However, I firmly believe that while international commitments must be honoured, but economic reforms should be implemented in such a manner that protects the ordinary citizens. Fiscal discipline is important, but it cannot come at the expense of the salaried class or low-income households, who are already facing economic pressure.
In the current economic scenario, there is an extensive discussion on how IMF-driven reforms should be balanced with social protection measures. And as a Chairman of the Senate Finance Committee, I can say that the Parliament is carefully examining the budget proposals to ensure that adjustment measures do not disproportionately burden the vulnerable groups.
The Pakistan Peoples Party has always advocated the strengthening of the social nets, the biggest example of this is the Benazir Income Support Programme, which remains one of the most important social protection initiatives in Pakistan’s history. Even today, we believe that the economic stabilization must be accompanied by targeted support for vulnerable groups. The real need of the hour is that Pakistan cannot rely indefinitely on the IMF programme, and the real challenge is to implement structural reforms that reduce our dependence on borrowing and improve domestic revenue generation.
PAGE: What is your perspective on the FBR revenue collection target for the fiscal year 2026-27?
Senator Saleem Mandviwalla: The FBR revenue collection target for FY2026-27 is ambitious and reflects the government’s efforts to improve the fiscal sustainability. However, achieving this target will require more than simply imposing additional taxes; it will require fundamental reforms in tax administration and documentation of the economy. In my opinion, the Pakistan’s tax problem is not necessarily low tax rates but rather a narrow tax base. Unfortunately, a major portion of the economic activity remains undocumented, and the salaried class of Pakistan has to bear the disproportionate burden. It is imperatively important to expand the tax net through technology, digitalization and better enforcement. There is a growing consensus that those who remained outside the purview of the tax system for years must be brought into the formal economy. There should be progressive and equitable taxation. The revenue growth should come from broadening the base rather than increasing the pressure on the salaried class and existing taxpayers. The burden must be fairly distributed among all sectors according to their capacity to contribute. The Senate Standing Committee on Finance & Revenue is thoroughly reviewing the proposed taxation measure and engaging with all stakeholders. Our objective is to ensure that revenue targets are realistic, achievable and supportive of economic growth rather than unfavorable to business activity and investment.
PAGE: How would you comment on PSDP allocation and the current state of infrastructure?
Senator Saleem Mandviwalla: The PSDP for FY2026-27 reflects the difficult balancing act between fiscal consolidation and development requirements. While the fiscal space remains constrained, it is encouraging to see that infrastructure and connectivity continue to receive significant attention because these investments are essential for economic growth, regional integration and employment generation. While PSDP allocations are important, the real question is whether the allocated funds are being utilized efficiently and whether projects are being completed on time. Historically, Pakistan has faced challenges related to project delays, cost escalations, and fragmented development planning. Therefore, effective implementation is just as important as allocation. Pakistan still requires significant investment in transportation networks, water infrastructure, energy transmission systems, urban development, housing, climate resilience, education, and healthcare facilities. These sectors directly impact economic productivity and quality of life. Infrastructure development should promote balanced regional growth. Development cannot be confined to a few urban centres. Investments must reach Balochistan, Sindh, South Punjab, Gilgit-Baltistan, merged districts, and other underserved areas so that every region benefits from economic growth. Furthermore, infrastructure today is not limited to roads and bridges. We must also invest in climate resilience, water management, urban infrastructure, public transport, digital connectivity, healthcare facilities, and educational institutions. The devastating floods of recent years demonstrated that climate-resilient infrastructure is no longer an option—it is a necessity. Overall, I would say that the PSDP moves in the right direction by prioritizing connectivity and strategic infrastructure, but the real challenge will be implementation, transparency, timely completion, and ensuring that every development rupee delivers tangible economic benefits for the people of Pakistan. Parliament will continue to closely scrutinize these allocations to ensure that national development objectives are achieved efficiently and equitably.
PAGE: What is your standpoint on Employment, Inflation, and Population Growth and Interest Rate in Pakistan?
Senator Saleem Mandviwalla: These four issues represent the core economic challenges faced by Pakistan, and they must be addressed through a comprehensive and coordinated strategy.
Employment:
Employment creation should be the topmost priority for Pakistan. Pakistan is a young country and our greatest asset is our youth population. Therefore, job creation must remain the central objective of economic policy. I believe that employment growth can be achieved through industrial expansion, support for SMEs, investment in infrastructure, agriculture modernization, IT exports, and vocation trainings. Sustainable jobs are created by economic activity, investment and entrepreneurship not just through government hiring.
Inflation:
The next most severe challenge affecting every Pakistani over past few years is inflation. Rising prices have reduced the purchasing power and increase the financial pressure on families across the country. While recent stabilization efforts have helped moderate inflationary pressures, the challenge now is to ensure that economic stability translates into relief for ordinary citizens. The Pakistan Peoples Party strongly supports targeted subsidies, social protection programmes and policies that reduce the cost of living for lower and middle income groups. In the recent years while there have been signs of improvement compared to previous years in inflation, many households continue to struggle with the high cost of living. Parliament is increasingly focused on ensuring that economic stabilization translates into real relief for citizens.
Population growth:
Pakistan’s demographic trends require serious long-term planning. A growing population can become a powerful economic asset if accompanied by investments in education, healthcare, vocational training and employment opportunities. However, without adequate planning, it can place additional pressure on public services and economic resources.
Interest rate:
Interest rates are an important tool for controlling inflation and maintaining the macroeconomic stability. However, it is tradeoff between high inflation and high borrowing costs which can also discourage investment, industrial expansion and ultimately business growth. As inflationary pressures continue to ease and economic conditions stabilize, there should be room for a gradual and responsible reduction in policy rates. Lower financing costs can encourage investment, stimulate economic activity, and support job creation. The objective should be to strike a balance between maintaining price stability and promoting economic growth.