Senate sub-committee presses FBR over Rs1,120bn FATA/PATA imports
A Senate sub-committee has asked the FBR to submit records within two days on imports worth about Rs1,120 billion under the FATA/PATA exemption scheme. Members voiced concern over alleged misuse of the scheme and delays in recovering taxes.
- Imports worth about Rs1,120 billion under the FATA/PATA scheme are under scrutiny.
- The committee ordered all required records submitted within two days.
- Possible tax and penalty liabilities are estimated at Rs400-500 billion, with the final amount yet to be set.
A Senate Sub-Committee on Interior and Anti-Narcotics has expressed serious concern over alleged misuse of the FATA/PATA tax exemption scheme, delays in recovering outstanding taxes and the failure of several companies to provide required records. The meeting was held at Parliament House on November 2, 2026, under convenor Senator Saifullah Abro.
Imported goods worth about Rs1,120 billion under the scheme are under scrutiny. Consumption certificates and related records have so far been identified for goods worth around Rs389 billion. In total, 223 consumption certificates were issued to 108 companies.
The FBR has issued notices to 512 companies, while letters to 58 companies were returned or refused. Thirty-five writ petitions have been filed before the Peshawar High Court, and 174 beneficiary companies approached the court seeking relief against FBR proceedings.
Senator Abro directed the FBR, the FIA and other institutions to submit complete documents, determine potential revenue losses and establish responsibility for violations. He also asked officials to present certificates and records of 20 major companies and prepare a separate case file. He sought clarification on about Rs85 billion.
Under SRO 2021, documents needed for consumption certificates include electricity and gas bills, buyers' bank statements, business records and employee details.
An FBR representative, Taqi, said suspected cases could be selected for audit and that audit findings would determine the recoverable amounts. Senator Abro rejected the explanation that audits were under way and demanded details of companies, cases and recovery steps. According to Minute Mirror, the FBR assured the committee that legal action would follow if liabilities were established.
The committee discussed potential revenue losses and tax liabilities estimated at Rs400-500 billion, to be determined through verification and legal scrutiny. Senator Abro questioned the FBR's performance while Pakistan was seeking loans from international financial institutions. He said "public money would be recovered at all costs".
Senator Umar Farooq and officials of the Interior Ministry, FBR, FIA and police attended and briefed the committee. FIA Director General Dr Usman Anwar and other officials were invited to help advance the FIA investigation.
Why it matters
Alleged misuse of tax exemptions affects public revenue and the taxes paid by Pakistanis. The committee's push for records could help determine how much is recoverable.
