ISLAMABAD: The Sub-Committee of the Senate Standing Committee on Interior and Narcotics on Tuesday raised alarm over smuggling, tax evasion and revenue losses, while directing complete details of all companies operating in tax-free areas be submitted in the next meeting.
Convener of the Sub-Committee of the Senate Standing Committee on Interior and Narcotics, Senator Saifullah Abro, also instructed that the chief secretary Balochistan be summoned for a personal hearing to provide a detailed briefing on measures taken to control smuggling and related issues.
Senator Umer Farooq stressed the need to curb petroleum smuggling in Balochistan. He noted that diesel is currently being sold at Rs240 per litre in Quetta and Rs210 per litre in rural areas. Customs officials informed the committee that 75,000 litres of diesel were confiscated in Hub the previous night, while additional quantities were seized in Hyderabad. They also informed the committee that up to 3 million litres of petroleum products per day are currently permitted for local populations from Iran. They further revealed that PSO, Shell, and Attock are not operational in several areas of Balochistan. Senator Abro expressed concern that petroleum worth Rs222 million was seized by customs authorities over the past five years. He observed that convoys of dozens of vehicles are reportedly involved in smuggling petroleum products. He sought a comprehensive report tracing the movement and destination of such fuel.
Customs authorities further stated that they have no operational presence along the Iran border or in Panjgur, Gwadar, Kech and Washuk, and are currently limited to settled areas of Balochistan. Senator Umer Farooq highlighted that large quantities of cannabis and opium are being openly cultivated in the Qila Abdullah valley, with little enforcement action being taken. Senator Abro directed strict action against non-performing customs officials posted in Balochistan, as well as in tax-free zones of FATA and FANA. He also instructed monitoring assets of such officials to ensure accountability. Officials of the Federal Investigation Agency (FIA) told the committee that in compliance with their directions, an inquiry report regarding Chota Lahore has been submitted, containing all relevant details.
The committee was also informed that a letter has been written to the Member Customs regarding tax exemptions applicable in FATA, PATA and adjoining areas. The convener remarked that these regions have increasingly become hubs of smuggling. The sub-committee decided to summon the CEO of TESCO in the next meeting. Furthermore, customs authorities were directed to compile comprehensive data on the total volume of goods transported to these regions, details of items manufactured there and subsequently sold in other parts of the country without payment of customs duties.
Senator Abro also highlighted the disparity in the tax system, stating that those who pay taxes are burdened further, while others evade taxes. The committee was informed that a notice was issued to the Member Operations. Officials from FIA informed the committee that letters have been sent to relevant departments and the case will be concluded within the next 10 days. The committee was informed that a total of 2,202 cigarette cartons were missing from a godown. Emphasising the need for strict action against tobacco industries, Senator Abro directed the installation of pickets to ensure proper monitoring. He also underscored concrete steps against those involved in illegal activities to enhance tax collection from grey areas.
A Member of FBR informed the committee that competent, honest officers have been posted in Khyber Pakhtunkhwa. He added that several new disciplinary proceedings have been initiated against dishonest officials, with many already dismissed. He also highlighted measures to reward honest officers. The convener also referred another case involving the embezzlement of Rs1.28 billion in the 765kV Dasu-Islamabad Transmission Line Grid Station project (Islamabad West, Lot-IV). He directed the FIA and NAB to take action against the contractor and officials of NTDC involved in the matter. It was also reported that steel factories have imported raw materials worth Rs100 billion, while oil and ghee manufacturers have imported hydrogenated vegetable oil, vegetable ghee and vanaspati ghee worth Rs320 billion since 2021 in tax-exempt areas. The convener sought submission of complete details of all companies operating in tax-free areas in the next meeting.
