ISLAMABAD — A Senate Sub-Committee on Interior and Anti-Narcotics has ordered the Federal Board of Revenue (FBR, Pakistan’s main tax authority) and other agencies to submit complete FBR import records within two days, after officials said goods worth about Rs1,120 billion brought in under the FATA/PATA tax exemption scheme are under scrutiny.
The meeting at Parliament House was convened by Senator Saifullah Abro. Senator Umar Farooq and officials from the Interior Ministry, FBR, the Federal Investigation Agency (FIA, the federal investigative body), police and other departments briefed the panel. Members raised concern over alleged misuse of the FATA/PATA exemption, delays in recovering outstanding taxes, and companies that have not supplied required papers.
What the committee was told
Officials said consumption certificates and related papers have so far been identified for imports worth around Rs389 billion. Further detail was still needed on the remaining shipments, how the goods were used, and any unpaid tax. The panel heard that 223 consumption certificates were issued to 108 companies and asked why full information on imports, factory output, use of goods and tax payments was not available for every firm.
Senator Abro criticised the FBR’s performance, saying Pakistan was seeking loans from international financial institutions while billions of rupees in alleged dues remained unrecovered. He said negligence and delay in collecting tax were unacceptable, and that public money would be recovered if evasion or irregularities were proven, with legal action and deposits into the national exchequer where required.
Two-day deadline for papers
The convenor directed officials to prepare a separate case file with FBR import records, customs documents, consumption certificates, tax payments, bank statements and other material. He also sought clarity on the legal basis and supporting papers for about Rs85 billion, and on what conditions were met before imported goods were released.
Officials said companies must deposit an amount or pay order equal to the value of the goods with customs before release to factories, subject to set rules. Under SRO 2021, papers for consumption certificates include electricity and gas bills, buyers’ bank statements, business records and employee details. Senator Abro asked why those checks had not been properly done and ordered presentation of certificates and records for 20 major companies flagged earlier, plus correspondence on challenged certificates. Concerned officers and inspectors were held responsible for vetting documents before issue. All required records were ordered within two days.
FBR representative Taqi said suspected fraud or non-payment cases could be picked for audit and that findings would help fix recoverable amounts. Senator Abro rejected that as insufficient and demanded names of companies that had filed papers, cases already examined, and concrete recovery steps.
Court cases, FIA probe and next steps
Officials said notices had gone to 512 companies; some sent complete records, others partial replies. Letters to 58 firms were returned or refused. Thirty-five writ petitions were filed in the Peshawar High Court, and 174 beneficiary companies sought court relief against FBR inquiries or proceedings. The convenor ordered a list of company names, ownership, business activity, notice history and pending cases, and told agencies to defend their position with documents and use legal powers where firms refuse records.
An FIA inquiry into imports, certificates, company activity and outstanding tax is underway. Senator Abro said FIA Director General Dr Usman Anwar and other officials had been invited, and directed the FIA and FBR to share information. If violations are established, responsible people and firms must face action, with recovery of dues and penalties and criminal cases where needed.
The committee also discussed possible revenue losses and tax liabilities estimated at Rs400–500 billion. Senator Abro said the figure must be fixed through record checks and legal review. He further directed a review of the FBR’s overall performance and a rethink of Sitara-i-Imtiaz nominations, saying national honours should reflect merit and measurable work.
Aasan alfaaz mein
Senate ki ek committee ne FBR se kaha ke do din ke andar import ke poore record do. FATA/PATA scheme ke under lagbhag 1,120 arab rupay ke saman ki jaanch chal rahi hai. Committee ka kehna hai ke tax bachane aur record na dene ke mamlat ko nahi chhora jayega. Agar ghalatian sabit huin to paisa wapas lene aur qanooni action lene ki baat ki gayi hai.
