Senator Saifullah Abro directs the FBR and FIA to investigate suspected tax evasion, verify consumption certificates and establish potential revenue losses estimated at Rs400–500 billion.

ISLAMABAD: A Senate sub-committee has questioned the Federal Board of Revenue (FBR) over imported goods worth approximately Rs1,120 billion under the FATA/PATA tax exemption scheme, directing the tax authority and other institutions to submit complete records within two days.

The Senate Sub-Committee on Interior and Anti-Narcotics expressed serious concern over alleged misuse of tax exemptions, delays in recovering outstanding taxes and the failure of several companies to provide the required documentation.

Convenor Senator Saifullah Abro directed the FBR, Federal Investigation Agency (FIA) and other relevant institutions to investigate suspected irregularities, establish potential revenue losses and identify officials or companies responsible for violations of the law.

The meeting, held at Parliament House, reviewed consumption certificates issued for imported goods, alleged tax evasion, outstanding liabilities, ongoing investigations and the performance of relevant departments. Senator Umar Farooq and officials from the Interior Ministry, FBR, FIA, police and other departments attended.

Rs1,120 billion imports under scrutiny

During the briefing, officials informed the committee that imported goods worth approximately Rs1,120 billion under the FATA/PATA tax exemption scheme were being examined.

Consumption certificates and related records had been identified for goods worth around Rs389 billion, while further information was required regarding the remaining imports, their utilisation and outstanding tax liabilities.

The committee was also informed that 223 consumption certificates had been issued to 108 companies.

Senator Abro questioned why complete records covering imports, factory production, utilisation of goods and tax payments were unavailable for all beneficiary companies.

He criticised the FBR over delays in recovering outstanding taxes, arguing that Pakistan was seeking financial assistance from international institutions while substantial potential revenue remained uncollected.

He directed officials to establish the actual financial impact of suspected irregularities and ensure that any recoverable amounts were deposited into the national exchequer.

FBR directed to provide company records

The convenor ordered the preparation of separate case files containing import records, customs documentation, consumption certificates, tax payments, bank statements and other relevant evidence.

He also sought clarification regarding approximately Rs85 billion, including the legal basis and supporting documents and the conditions fulfilled before imported goods were released.

Officials explained that companies were required to deposit an amount or provide a pay order equivalent to the value of imported goods with customs authorities before their release to factories, subject to prescribed conditions.

Under SRO 2021, documentation required for consumption certificates included electricity and gas bills, buyers’ bank statements, business records and employee details.

Senator Abro questioned whether these requirements had been properly verified before certificates were issued.

He directed officials to produce consumption certificates and supporting records for 20 major companies identified during an earlier meeting. He also sought correspondence with companies whose certificates had been questioned and explanations for cases where no objections had been raised.

The convenor held the concerned officers and inspectors responsible for verifying company documents and directed that negligence at any level be identified.

Notices issued to 512 companies

FBR representative Taqi informed the committee that suspected cases of fraud or non-payment of taxes could be selected for audit. The department was examining relevant cases and would submit audit findings to determine recoverable amounts.

However, Senator Abro demanded details of companies that had submitted records, cases already examined and practical measures taken to recover outstanding taxes.

Officials disclosed that notices had been issued to 512 companies. While some had submitted complete documentation, others had provided partial information.

Letters sent to 58 companies had reportedly been returned or refused.

The committee was further informed that 35 writ petitions had been filed before the Peshawar High Court, while 174 beneficiary companies had approached the court seeking relief against FBR inquiries or proceedings.

Senator Abro directed officials to compile company names, ownership details, business activities, notice records and details of pending litigation.

He instructed the relevant institutions to defend their positions before the courts through documentary evidence and exercise their legal powers where companies failed to provide the required information.

Potential tax losses estimated at Rs400–500 billion

The committee also discussed potential revenue losses and outstanding tax liabilities estimated at Rs400 billion to Rs500 billion.

Senator Abro directed the authorities to determine the actual amount through verification of records and legal scrutiny rather than relying on preliminary estimates.

Regarding the FIA investigation, officials said an inquiry was underway into imports, consumption certificates, company activities and outstanding taxes.

The convenor directed the FIA and FBR to share information and coordinate their investigations. If violations or financial irregularities were established, responsible individuals and companies should face legal action, with outstanding taxes and penalties recovered. Criminal cases should also be registered where required.

The committee additionally reviewed companies involved in importing edible oil, ghee, steel, food items, polymers and tea, directing authorities to examine their ownership, management and business activities.

Report due before November 9

The meeting also reviewed approximately 20 import entries worth Rs65 billion during the preceding six months, involving 20 Goods Declarations (GDs) and 19 factories.

The relevant authorities were directed to examine import documentation, factory records, utilisation of imported goods and the legal validity of consumption certificates.

Senator Abro ordered officials to prepare a comprehensive report by November 9 covering the business activities and import records of five key companies.

The report is intended to help the committee review the matter ahead of Peshawar High Court proceedings scheduled for November 12, 2026.

He also directed institutions to coordinate with their legal teams, prepare documentary evidence and submit complete responses before the court.

The committee discussed the FBR’s overall performance and the reconsideration of nominations for the Sitara-i-Imtiaz, stressing that national honours should reflect merit, transparency and measurable contributions.

Senator Abro reiterated that all relevant institutions must submit consumption certificates, import records, tax notices, court petitions, potential liabilities and official correspondence within two days.

He stressed that investigations and recovery efforts must proceed in accordance with the law, adding that protecting national resources remained a permanent responsibility of public institutions.