ISLAMABAD, Sep 22 (APP):The Senate Standing Committee on Interior and Narcotics Control convened on Tuesday at Old PIPS Hall, Parliament Lodges, under the chairmanship of Senator Faisal Saleem Rehman to conduct extensive parliamentary scrutiny into national tax leakages, customs border security, and consular facilitation for overseas Pakistanis. The high-level committee proceedings were attended by Senators Talha Mahmood, Saifullah Abro, Shahadat Awan, Mir Dostan Khan Domki, Umer Farooq, Jam Saifullah Khan, …
Senate Standing Committee on Interior reviews USD 1 bn tax evasion rackets, border smuggling, diaspora passport rules
ISLAMABAD, Sep 22 (APP):The Senate Standing Committee on Interior and Narcotics Control convened on Tuesday at Old PIPS Hall, Parliament Lodges, under the chairmanship of Senator Faisal Saleem Rehman to conduct extensive parliamentary scrutiny into national tax leakages, customs border security, and consular facilitation for overseas Pakistanis.
The high-level committee proceedings were attended by Senators Talha Mahmood, Saifullah Abro, Shahadat Awan, Mir Dostan Khan Domki, Umer Farooq, Jam Saifullah Khan, Palwasha Khan and Dilawar Khan.
The committee evaluated the detailed Sub-Committee report submitted by Convener Senator Saifullah Abro, which focused on an estimated USD 1 billion in annual revenue loss attributed to tax evasion, illicit manufacturing, and trade malpractices within the tobacco sector, factories operating in the tax-exempted areas (FATA, PATA and Khyber Pakhtunkhwa), and theft of 2828 cartons of cigarettes and allied matters.
The Committee scrutinised the Federal Investigation Agency’s (FIA) inquiry regarding 2,828 stolen cigarette cartons and the subsequent registration of FIR. The Members expressed strong dissatisfaction over the nomination of lower-rank officials in the FIR and stressed that the officers responsible must be held accountable and directed the FIA to intimate the Committee on the progress in the investigation.
Examining multi-billion-rupee tax exemptions in special economic FATA and PATA areas, committee members questioned why administrative notices were issued across a Rs 1,120 billion tax-exempted zone while primary factory owners avoided accountability and low-level transport drivers were to face arrests and legal proceedings.
Senator Talha Mahmood raised critical concerns over procedural flaws during the initial registration of cases, noting instances where key figures identified in preliminary inquiries were excluded from final charges.
Further auditing of Federal Board of Revenue (FBR) warehouse protocols revealed serious gaps, including missing/unavailability of CCTVs, non-existent inventory ledgers, and unverified handovers of confiscated contraband.
Addressing jurisdictional overlap and operational mandates, the committee examined the legal grounds allowing the FIA to initiate independent tax inquiries into FBR domain matters, directing both institutions to establish a synchronized operational mechanism.
The committee reviewed notifications empowering the Frontier Corps (FC) and Pakistan Rangers with anti-smuggling authority across border zones in FATA and PATA, with the State Minister and Interior Ministry officials detailing that operational powers were delegated due to complex local law and order situations.
The Committee decided to further pursue the matter of tax evasion, which has caused loss to the national exchequer. The Committee also decided to constitute a sub-committee to further investigate the said matter.
The committee reviewed briefings from the Ministry of Interior regarding Rule 18 of the Passport Rules 2021, which governs the issuance of Emergency Travel Documents (ETD) for one-way repatriation of stranded or deported citizens.
Chairman Senator Faisal Saleem Rehman questioned delays in national status verifications and family tree attestations involving foreign missions and the Intelligence Bureau.
Addressing complaints that Pakistani embassies abroad frequently issue short-term passports restricted to 1 to 3 years rather than standard 5-year tenures, the Chairman informed the committee that he has a legislative bill before the Senate to reform passport rules and simplify procedures for the Pakistani diaspora.
Concluding the meeting, Chairman Senator Faisal Saleem Rehman directed the FBR and FIA to submit comprehensive inquiry reports within one month, present verified physical stock registers for all seized warehouse goods, and ensure that future enforcement actions strictly target main beneficiaries and factory owners rather than field personnel.
The meeting was attended and briefed by Minister of Interior alongside the Secretary and other senior officials, Members FBR, ADG, Deputy Dir, FIA, and all relevant officials.
