FBR to establish digital enforcement stations to curb smuggling

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Karachi, June 29, 2025 – In a major step toward modernizing border control and trade monitoring, the Federal Board of Revenue (FBR) is set to establish digital customs enforcement stations across Pakistan to strengthen efforts against smuggling and illicit trade.

This initiative has been introduced through the Finance Act, 2025, which incorporates a new Section 226 into the Customs Act, 1969.

The new provision empowers the FBR to declare any location as a Digital Enforcement Station through a notification in the official Gazette. These stations will be strategically established at key points such as borders, highways, ports, and inland checkpoints. Additionally, existing customs check-posts can also be upgraded and notified as digital enforcement stations under this framework.

According to the new law, the FBR is authorized to frame rules for the staffing, operation, and technological enablement of these stations. The primary objective is to enhance digital enforcement capabilities using modern tools such as electronic surveillance, real-time data capture, and automated reporting systems. These measures aim to support faster and more accurate detection of unlawful activities, including the movement of contraband goods.

To bolster operational strength, the FBR has been allowed to hire retired junior-commissioned officers and soldiers of the armed forces on a contractual basis for deployment at these digital enforcement posts. This move is expected to enhance field discipline and bring military-style precision to customs enforcement duties.

Officials note that the deployment of digital enforcement stations will not only deter smugglers but also build confidence among legal traders, promoting fair competition and a healthier business environment. The digitization of checkpoints and the incorporation of modern surveillance will also enable the FBR to maintain digital records of cargo movement, inspections, and seizures—further strengthening transparency and accountability.

With the rollout of these digital enforcement hubs under the Finance Act, 2025, Pakistan aims to align its customs enforcement infrastructure with global standards, using technology to boost revenue collection, border security, and trade facilitation across the country.