Islamabad, May 18, 2025 – The Federal Board of Revenue (FBR) has formally issued SRO 816(I)/2025 to expand the scope of the transit fee imposed on commercial goods destined for Afghanistan through Pakistan.
The move is part of a broader effort to tighten regulatory controls and address the persistent misuse of Afghan Transit Trade privileges.
Under the newly issued SRO, the FBR has extended the 10% ad valorem processing fee to a wider range of Afghan-bound goods transiting via Pakistan. The updated list includes a comprehensive array of industrial and commercial items such as cranes, derricks, boilers, automatic data processing machines, electrical apparatus, agricultural machinery, and dozens of other products previously not covered under the fee structure.
This development marks a significant amendment to the earlier SRO 1380(I)/2023, which had introduced the 10% fee on five major categories: confectioneries and chocolates, footwear, home textiles and blankets, garments, and mechanical and electrical machinery. With the latest changes, the FBR aims to ensure greater oversight and minimize revenue losses caused by goods being routed through Pakistan into Afghanistan at lower duties.
The FBR’s decision follows strong recommendations from the Ministry of Commerce. The ministry highlighted that Afghanistan’s customs duties are considerably lower than Pakistan’s, and this disparity has been exploited by traders on both sides of the border. According to officials, such exploitation undermines Pakistan’s revenue system and distorts trade patterns.
To counter this misuse, the Ministry proposed two key reforms: first, replacing the existing Revolving Insurance Guarantee with a 100% bank guarantee based on assessed value; second, extending the 10% processing fee to categories of goods that have shown unjustified spikes in transit volume, suggesting evasion tactics.
The FBR has acted swiftly on these recommendations. The newly listed goods subject to the fee include not just high-value machinery and equipment but also various types of electrical parts, transmission apparatus, cameras, industrial tools, and even electronic waste. This expansion of the fee is intended to close loopholes and ensure fair trade practices within the Afghan Transit Trade framework.
By implementing these measures, the FBR reinforces its commitment to protect Pakistan’s revenue base while promoting lawful commerce. Importers and customs clearing agents are advised to stay updated with FBR regulations to avoid any fee-related penalties or disruptions in cross-border trade operations.