ISLAMABAD, June 22, 2025 – The Federal Board of Revenue (FBR) has proposed a key amendment under the Finance Bill 2025-26 aimed at regulating tax benefits for investments made through Special Convertible Rupee Accounts (SCRA).
FBR Chairman Rashid Mahmood Langrial, while briefing the National Assembly Standing Committee on Finance on Saturday, stated that the FBR is suggesting a 12-month holding period to qualify for the concessional tax regime on SCRA-based investments.
The proposal is part of FBR’s broader plan to encourage long-term and stable foreign investments while discouraging speculative and short-term capital inflows. The Finance Committee, however, expressed reservations over the proposed one-year duration. Chairman of the Finance Committee, MNA Naveed Qamar, argued that the 12-month condition might deter potential investors from utilizing the SCRA framework, particularly overseas Pakistanis seeking flexible investment windows.
Responding to these concerns, the FBR chairman indicated a willingness to revise the proposal. He said, “The FBR is open to reducing the holding period to six months to make the concession more attractive.” He also noted that the matter had already been deliberated with the State Bank of Pakistan (SBP). Any further reduction to three months, he emphasized, would require approval from the Federal Cabinet.
MNA Mirza Ikhtiar Baig also stressed the importance of safeguarding the interests of overseas Pakistanis investing through SCRA channels. During the session, SBP Executive Director Muhammad Ali Malik, joining via video link from Karachi, clarified that the proposed amendment applies strictly to SCRA and not to the Roshan Digital Account (RDA).
Malik supported the need for a holding period, stating that the intent is to curb market volatility caused by short-term flows and ensure tax concessions benefit only those investors who maintain long-term positions in the SCRA. He affirmed that a minimum one-year holding requirement would not significantly disrupt current investment patterns, as per SBP’s analysis.
Following discussions, the finance committee recommended a compromise: a six-month holding period to avail the concessional tax regime. This balanced approach, if adopted, would allow the FBR to promote investment stability while making SCRA investments more appealing and accessible.