Senate Standing Committee on Interior Reviews USD 1 Billion Tax Evasion Rackets, Border Smuggling, Diaspora Passport Rules
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - September 22, 2026) 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. The committee aimed 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 reviewed the detailed Sub-Committee report submitted by Convener Senator Saifullah Abro, which focused on an estimated USD 1 billion in annual revenue loss due to tax evasion, illicit manufacturing, and trade malpractices within the tobacco sector. This included factories operating in tax-exempted areas (FATA, PATA, and Khyber Pakhtunkhwa) and theft of 2828 cartons of cigarettes.
The committee scrutinized the Federal Investigation Agency's (FIA) inquiry regarding the stolen cigarette cartons and subsequent registration of FIR. Members expressed dissatisfaction with the nomination of lower-rank officials in the FIR and emphasized that responsible officers should be held accountable. They directed the FIA to provide updates on the investigation progress.
In examining multi-billion-rupee tax exemptions in special economic zones (FATA and PATA), committee members questioned why administrative notices were issued across a Rs 1,120 billion tax-exempted area while primary factory owners avoided accountability, with low-level transport drivers facing arrests and legal proceedings.
Senator Talha Mahmood raised concerns over procedural flaws in the initial registration of cases, noting instances where key figures identified in preliminary inquiries were excluded from final charges.
Further auditing of the Federal Board of Revenue (FBR) warehouse protocols revealed serious gaps, including missing/unavailable CCTVs, non-existent inventory ledgers, and unverified handovers of confiscated contraband.
The committee explored jurisdictional overlap and operational mandates. They examined 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. State Minister and Interior Ministry officials explained that these operational powers were delegated due to complex local law and order situations.