Karachi, June 22, 2025 – The Senate of Pakistan has proposed significant changes to the Finance Bill, 2025, recommending a substantial increase in the threshold of financial resources required for certain transactions. One of the key recommendations is to raise the required financial resource ratio for eligible transactions from the proposed 130% to 400%. The Senate has reviewed the Finance Bill and forwarded its set of recommendations to the National Assembly for further consideration. A major focus has been on the proposed Section 114C of the Income Tax Ordinance, 2001, which seeks to restrict specific financial transactions to only those deemed eligible under the law. The term “eligible person” refers to individuals or entities, including immediate family members, who have filed income tax returns for the tax year preceding a transaction and have declared sufficient financial means in their wealth or financial statements. Under the current proposal in the Finance Bill, the threshold for sufficient financial resources is 130% of the declared cash and cash-equivalent assets, which includes the fair market value of gold, net realizable value of stocks, bonds, receivables, and other financial instruments. The Senate, however, has recommended increasing this threshold to 400% to ensure tighter financial scrutiny and to prevent the misuse of the tax system by ineligible…