Senate panel calls for uniform banking procedures as lawmakers review customer complaints, banking charges and workplace policies.
ISLAMABAD: The State Bank of Pakistan (SBP) has clarified that Visa card transactions carried out within Pakistan are processed in Pakistani rupees and are not charged in US dollars, addressing concerns raised before the Senate Standing Committee on Finance and Revenue over banking services and payment card practices.
The clarification was made during a meeting of the committee chaired by Senator Saleem Mandviwalla, where lawmakers reviewed customer complaints relating to banking services, account closures, transaction charges and consumer protection.
Domestic Visa transactions processed in rupees
During the meeting, the SBP Governor informed the committee that all Visa card transactions conducted within Pakistan are settled in Pakistani rupees and are not billed in US dollars.
He also explained that SMS transaction alerts are an optional service and can only be activated with a customer’s consent. Many commercial banks now provide transaction notifications through mobile banking applications and email as alternatives to SMS alerts.
Banks bear Rs80 billion cost under remittance initiative
The committee was informed that commercial banks collectively bear around Rs80 billion each year under the Pakistan Remittance Initiative (PRI).
Members of the committee appreciated the reforms introduced under the initiative, observing that they have generated annual savings of approximately Rs80 billion while supporting the country’s remittance system.
Senate panel seeks standardised banking procedures
The committee also examined complaints concerning difficulties faced by banking customers, particularly Politically Exposed Persons (PEPs).
MNA Muhammad Moin Amir Pirzada informed lawmakers that, despite earlier directions, commercial banks had yet to adopt uniform Standard Operating Procedures (SOPs) for handling customer cases. He said his own bank account had been closed in April 2026 and that repeated correspondence with both the relevant bank and the SBP had gone unanswered.
He urged the central bank to introduce a standardised annual customer data update mechanism to prevent similar cases in the future.
SBP acknowledges branch-level shortcomings
Responding to the concerns, the SBP Governor said regulations governing PEP accounts were already in place, adding that the shortcomings identified by the committee stemmed from branch-level implementation rather than regulatory policy.
He informed members that a backup officer had already been designated and assured the committee that the central bank would appoint a dedicated focal person to strengthen complaint handling and improve customer service.
Finance Minister Senator Muhammad Aurangzeb also supported the introduction of uniform banking procedures, saying consistent SOPs across commercial banks would improve customer service and strengthen grievance redressal mechanisms.
Committee reviews taxes collected through electricity bills
The committee also discussed taxes collected through electricity bills.
The Chairman of the Federal Board of Revenue (FBR) informed lawmakers that approximately Rs476 billion had been collected through electricity bills, including Rs351 billion in sales tax and Rs124 billion in adjustable withholding income tax.
He explained that the sales tax charged on electricity forms part of Pakistan’s broader sales tax regime.
No mandatory abaya policy in banks
Lawmakers also reviewed complaints regarding workplace dress codes in certain banks.
Senator Dr Zarqa Suharwardy Taimur alleged that some female employees were being compelled to wear abayas, while Senator Sherry Rehman stressed that no employee should be forced to adopt any specific attire.
The SBP Governor told the committee that previous recommendations had already been communicated to commercial banks.
The committee reiterated that it had recommended only a modest dress code and had never instructed banks to make abayas or any other particular form of clothing compulsory.
It directed all banks to submit their human resources dress code policies and instructed the SBP to circulate updated guidelines to ensure employees are not subjected to unnecessary compulsion regarding workplace attire.