Karachi, June 29, 2025 – The government has introduced a key amendment to the Customs Act, 1969 through the Finance Act, 2025, specifically targeting delays in customs auctions caused by legal stays.
A new sub-section (6) has been added to Section 169 of the Customs Act, stipulating that no court shall stay the auction proceedings of customs goods unless the petitioner deposits a minimum of twenty-five percent of the reserve price as a pay order or bank guarantee with the court’s nazir. This financial requirement is now a prerequisite for securing a judicial stay.
The newly inserted clause reads: “No court shall stay the auction proceedings unless the person obtaining stay order furnishes a pay order or bank guarantee not less than twenty-five percent of the reserve price of the goods before the nazir of the court.”
The introduction of this provision is aimed at curbing frivolous litigation that often stalls the customs auction process. In recent years, numerous auctions have faced prolonged delays due to stay orders issued by courts, often at the request of parties with limited interest in the actual auction. This has resulted in massive inventory build-ups at customs warehouses and financial losses to the national exchequer due to depreciation and storage costs.
By requiring a monetary guarantee upfront, the amendment encourages only genuine claimants to approach courts while safeguarding the customs department’s right to dispose of goods in a timely manner. It is also expected to enhance investor and bidder confidence in the transparency and continuity of customs auctions.
Legal and trade analysts view this as a progressive step to improve auction efficiency, minimize legal abuse, and support faster clearance of seized or unclaimed cargo lying at ports and dry ports across Pakistan.
With the implementation of the Finance Act, 2025, the government seeks to bring discipline, accountability, and commercial seriousness to the process of customs auctions, ultimately enhancing revenue recovery and reducing operational bottlenecks.