In a rare but resounding alignment, Pakistan’s business community and senior members of the Senate have spoken out against the coercive provisions of the Finance Bill 2025–26 particularly Section 37AA, which authorizes the Federal Board of Revenue (FBR) to arrest individuals and issue money laundering notices without judicial oversight.

According to the business community, this clause is not only unconstitutional and regressive, but also threatens economic stability, foreign investment, and civil liberties. The concern is that it replaces tax reform with fear-based enforcement, and due process with unchecked bureaucratic power.

Senator Farooq H. Naek – Pakistan Peoples Party (PPP)
A former law minister and seasoned constitutional expert, Senator Naek warned that such unregulated authority could allow “junior officers to turn into tyrants.” He insisted that no arrest or money laundering notice should be issued without the written approval of the FBR Chairman or Finance Minister, highlighting the risk of misuse without oversight. His intervention reflects a principled stand for the rule of law a position deeply valued by the business community.

Senator Saleem Mandviwalla – Chairman, Senate Standing Committee on Finance
Known for his consistent advocacy of economic rationality, Senator Mandviwalla firmly opposed the arrest powers being handed to FBR commissioners. He cautioned that “Pakistan must not become a police state under the guise of revenue enforcement.” Expressing concern over investor sentiment and bureaucratic overreach, he positioned himself as a key institutional safeguard against the erosion of economic freedom.

Senator Shibli Faraz – Pakistan Tehreek-e-Insaf (PTI)
Describing the legal provision as “draconian,” Senator Faraz warned that these amendments would seriously damage business confidence. His remarks emphasized the bipartisan unease regarding an enforcement-heavy fiscal framework, especially at a time when the country urgently needs stability and investor trust.

Finance Minister Muhammad Aurangzeb
Once celebrated as a reform-minded banker, Finance Minister Aurangzeb’s support for these controversial provisions has surprised many. While he acknowledged that the arrest-related powers “merit review,” his alignment with an enforcement-centric approach, championed by the FBR Chairman, has left the business community disappointed. The Prime Minister’s pro-business reputation is now being questioned in light of such regressive measures endorsed by his top financial team.

FBR Chairman Rashid Mahmood Langrial
FBR Chairman Langrial has adopted a hardline position, insisting that the bill merely “codifies and refines” existing powers. However, his stance has come to symbolize what many in the business sector see as institutional overreach and fiscal authoritarianism. Instead of promoting tax culture through facilitation and reform, this strategy, they argue, deepens public fear and pushes compliant taxpayers toward distrust and resistance.

How the Business Community Interprets the IMF’s Role
Among business leaders, there’s growing frustration over what they see as a misapplication of IMF revenue benchmarks. While the IMF emphasizes broadening the tax base and improving transparency, it does not call for arrests without due process. The prevailing view is that these controversial tactics are not IMF directives but domestically chosen responses, misaligned with constitutional values and investor-friendly governance.

Business Community’s Unified Message
From trade bodies to chambers of commerce across Pakistan, the message is clear: tax enforcement cannot come at the cost of economic dignity and legal fairness. Compliance must be fostered through trust, not intimidation. The business community urges the Prime Minister and Parliament to repeal, not merely revise, the provisions that grant arrest powers without judicial review. Only by reversing these measures can investor confidence be restored and Pakistan’s constitutional framework respected.