Karachi, November 6, 2024 – The Federal Board of Revenue (FBR) has announced a significant achievement in the collection of customs duties on petroleum, oil, and lubricants (POL) products during the fiscal year 2023-24.
A total of Rs 330 billion was collected, marking a 14% increase from the Rs 289 billion collected in the previous fiscal year. This growth underscores the resilience of the country’s import duties and highlights the continued importance of the POL sector in Pakistan’s economy.
According to FBR’s annual report, the total customs duty collection for FY2023-24 reached Rs 1,104.1 billion, a notable 18.5% increase from the previous fiscal year’s collection of Rs 931.7 billion. The customs duty contributed approximately 12% to the overall FBR revenue for the fiscal year, reflecting the critical role of trade taxes in financing government operations.
The POL sector, which includes petroleum products, oil, and lubricants, remains the largest contributor to the national customs duty revenues. It accounted for 29.1% of total customs duty collections in FY2023-24, a slight decrease from the 29.8% share in the prior year. Despite the small dip in share, the revenue from POL products saw an increase of 14.1%, from Rs 289 billion in FY2022-23 to Rs 329.6 billion in FY2023-24.
The FBR’s positive growth trend in customs duty collection also included strong performances from other sectors. The vehicles category, for example, saw a significant surge of 42% in its contribution, with Rs 125.3 billion collected in FY2023-24 compared to Rs 88.2 billion in FY2022-23. The vehicle sector’s share in overall customs duty rose to 11%, up from 9.1% in the previous year, making it the second-largest contributor after POL products.
While the customs duty collection from the POL and vehicle sectors showed impressive growth, some categories witnessed a decline. Edible oil, a key import item, saw a decrease of 12.7% in collections, which was attributed to a 13.9% drop in the import volume of edible oil. This decline, despite the overall positive performance in customs duty collection, highlights the complexities of global trade dynamics and the impact of shifting import trends on revenue generation.
Other sectors that contributed to the FBR’s customs duty revenues included articles of iron and steel, electrical machinery, and machinery & mechanical appliances. The iron and steel sector, for instance, experienced a 27.2% growth, with a total collection of Rs 66.6 billion, while electrical machinery saw a 37.8% increase, collecting Rs 51.8 billion. The machinery sector grew by 26.9%, bringing in Rs 47.2 billion.
The FBR’s strategy to improve revenue collection and curtail smuggling has played a key role in bolstering customs duty figures, despite global economic challenges. The positive growth trajectory is indicative of the broader recovery in Pakistan’s trade sector, which had previously been hampered by external and internal economic factors.
The overall customs duty revenue of Rs 1,104.1 billion is expected to provide significant fiscal support to the government, enabling it to meet its budgetary targets and continue funding critical development projects. With the POL sector’s dominance and robust performance across other categories, FBR is optimistic about sustaining this upward revenue trend in the coming fiscal years.
