Islamabad, May 16, 2025 -In a major regulatory move aimed at formalizing and streamlining Pakistan’s cargo and logistics sector, the Federal Board of Revenue (FBR) has issued a detailed framework for licensing freight forwarders across the country.
The draft rules, released via SRO 814(I)/2025, will come into effect after a 15-day consultation period to incorporate feedback from stakeholders.
Under the newly proposed rules, no individual or entity will be allowed to operate as a freight forwarder without obtaining a proper license from the designated licensing authority. Interested applicants must submit Form-A along with required documentation, including National Tax Number (NTN), Sales Tax Registration Number (STRN), proof of membership with a recognized freight forwarders association, and an application fee of Rs5,000.
The eligibility criteria for applying include being a Pakistani citizen or a registered legal entity, aged 18 or above, and possessing valid membership with a trade body registered under the Trade Organizations Act, 2013. Additionally, applicants must demonstrate insurance coverage as required by clients or carriers.
To obtain a license, freight forwarders must also deposit a security amount of Rs200,000 for operations at a single customs station or Rs500,000 for multi-station operations, in the form of Defense Saving Certificates. The license will be valid for two years and is renewable upon compliance with regulations and payment of a Rs10,000 renewal fee.
The new rules go beyond just licensing. They lay out strict operational and ethical guidelines for freight forwarders, including their responsibility to act as intermediaries between cargo owners and carriers, ensure the timely movement of goods, manage multimodal logistics, and handle documentation and customs procedures professionally. They are also responsible for issuing house bills of lading, arranging warehousing, and ensuring proper coordination with shipping lines and exporters/importers.
Significantly, the FBR has granted the licensing authority power to suspend or revoke licenses in cases of fraud, criminal conviction, regulatory violations, or unethical practices such as bribery or misrepresentation. Any violations could also lead to forfeiture of security deposits.
In the event of a licensee’s death, licenses can be transferred to legal heirs if they meet the licensing conditions. Permits for clerks involved in customs operations will also be issued, with renewal conditions and penalties for violations outlined in detail.
This move by the FBR reflects a robust step toward strengthening Pakistan’s logistics and trade infrastructure, ensuring that freight forwarders operate transparently and within a formalized legal structure. It also places significant compliance responsibility on freight forwarders to uphold professional standards, contributing to a more accountable cargo handling and forwarding environment.