Islamabad, May 14,2026: The Standing Committee on Finance and Revenue of the National Assembly, chaired by Syed Naveed Qamar, on Thursday continued deliberations on The Financial Institutions (Recovery of Finance) Amendment Act, 2026 during a meeting held at the Parliament House.
The committee undertook a detailed clause-by-clause review of proposed amendments aimed at strengthening safeguards for mortgagors against arbitrary, coercive, or unfair exercise of recovery and foreclosure powers by financial institutions.
Lawmakers specifically examined provisions related to Sections 15A(2), (6), (7), (10), (12), (14), 15(b), 15(d), and 15(17), with a focus on ensuring transparency and fairness in recovery proceedings.
After extensive deliberations, the committee recommended that the bill, as finalized by the standing committee, be passed by the National Assembly.
During discussions on the newly inserted Section 15A, the committee reviewed the proposed framework for issuing first, second, and final notices, each requiring a minimum 30-day notice period before initiation of further recovery action.
Members also debated provisions related to restructuring, rescheduling, and settlement of mortgage liabilities, expressing concern that borrowers should not face undue delays from financial institutions in processing such requests.
Chairman Syed Naveed Qamar emphasized the need to maintain a balanced approach that protects both financial institutions and borrowers, ensuring fairness and legal clarity in the recovery process.
The committee further discussed foreclosure mechanisms under housing finance arrangements and raised concerns that, without adequate safeguards, the proposed framework could disproportionately affect ordinary borrowers.
The committee also approved the minutes of its previous meeting held on May 13, 2026.
The meeting was attended by MNAs Bilal Farooq Tarar, Dr. Nafisa Shah, Sharmila Faruqui, Mirza Ikhtiar Baig, and Muhammad Jawed Hanif Khan, along with the State Minister for Finance and Revenue, Secretary Law and Justice, and senior officials from the Finance Division, Law Division, and the State Bank of Pakistan.
