Islamabad, November 10,2026: A Senate Sub-Committee on Interior and Narcotics Control has summoned complete financial and investigative records from the Federal Board of Revenue (FBR) regarding the alleged misuse of tax exemptions in former FATA/PATA areas, involving imports worth Rs1,120 billion, and directed authorities to expedite investigations and recovery of any evaded taxes.
The committee, chaired by Senator Saifullah Abro, decided to hold its next meeting in-camera on November 16 to examine sensitive financial records, consumption certificates, payments and evidence collected by investigative agencies.
The meeting reviewed progress on the investigation into the alleged misuse of the FATA/PATA tax exemption scheme, recovery of evaded taxes and identification of individuals and companies potentially involved.
Senator Abro expressed serious displeasure over the absence of the Director General of the National Cyber Crime Investigation Agency (NCCIA), questioning why the official had not attended despite being specifically asked to brief the committee at its previous meeting.
Representatives of the FBR and Federal Investigation Agency (FIA) presented their respective positions on the ongoing proceedings. FBR officials maintained that the department had not received any formal court notice, while the FIA informed the committee that its legal adviser had received the relevant court order.
The chairman questioned the apparent lack of coordination between the departments and sought an explanation for the FBR’s unawareness of the court proceedings for nearly two months.
The committee was informed that Customs import data and consumption certificates for the period from 2018 to June 2026 showed total imports of Rs1,120.662 billion, against which consumption certificates covered imports worth Rs389.865 billion, leaving an apparent unreconciled difference of Rs730.797 billion.
The sector-wise analysis showed apparent differences of Rs148.248 billion in steel, Rs146.955 billion in textiles and fabric, Rs100.884 billion in food, and Rs76.487 billion in ghee and oil.
The committee called for a comprehensive, transaction-wise reconciliation to establish the actual position and determine any potential tax liability or revenue loss.
The FIA informed the committee that 512 notices had been issued to companies in connection with the investigation. Of these, 19 companies had joined the proceedings with partial records, while more than 100 notices were returned or remained undelivered.
The agency clarified that the proceedings were investigative in nature and aimed at obtaining relevant documents and explanations. Possible corruption, abuse of authority, diversion of goods and wrongful release of securities were also being examined independently in accordance with the law.
Senator Abro expressed concern over the FBR’s reluctance to share relevant records with the parliamentary committee, particularly when the department was prepared to provide information to courts and other authorities.
Referring to Article 66 of the Constitution, he questioned the legal basis for withholding information from Parliament and asked the FBR to clarify the provisions governing disclosure of such records.
The committee also examined consumption certificates and payments released against them. It was informed that consumption certificates were expected to have been issued for 60 of the 223 companies under consideration.
The chairman sought complete details of the certificates, payments released against them and supporting documentation. He particularly highlighted 20 certificates involving approximately Rs64 billion and directed the FBR to provide their complete records and explain the basis for their issuance.
He also referred to the committee’s Terms of Reference concerning approximately Rs74 billion and questioned the release of payments without adequate verification and scrutiny.
Directing the FBR to examine the Statement of Requirements (SOR) issued in 2021, Senator Abro called for an investigation into whether consumption certificates and subsequent payments had been processed in accordance with the applicable legal framework.
He stressed that the investigation should cover all companies and individuals potentially involved rather than remain confined to selected cases.
The chairman also directed the FBR to examine the list of petitioners involved in court proceedings, verify their respective positions and issue notices wherever necessary.
The committee raised concerns over reports of individuals possessing substantial assets, expensive vehicle convoys and unexplained sources of income.
Senator Abro urged the FBR to investigate possible financial irregularities and money laundering, including financial trails and the potential involvement of influential individuals and networks.
The committee also discussed the alleged movement of tobacco-related materials under the FATA/PATA exemption regime and their subsequent use by companies operating outside the exempted areas.
The chairman directed the FIA, FBR, Customs and other relevant agencies to coordinate their efforts and provide complete import records from January 2018 onwards, including details of consignments, transportation routes, destinations and companies involved.
The Customs authorities were also directed to furnish details of imports through Khyber Pakhtunkhwa and former FATA, particularly for the period after June 2026, to identify possible misuse of the exemption mechanism.
The chairman emphasised that the investigation must proceed without fear or favour and that all legally recoverable public money must be recovered. He also directed officials to seek assistance from law enforcement agencies wherever security or law-and-order constraints hindered access to factories and other premises.
For the November 16 in-camera meeting, the FBR was directed to bring complete details of all consumption certificates issued from November 2025 onwards, along with corresponding payments, pay orders, supporting documents and verification records.
Khyber Pakhtunkhwa Customs authorities were given four to five working days to compile the required import and movement records, covering different routes and customs regimes.
During the meeting, the FIA’s Anti-Corruption Circle also briefed the committee on a coordinated multi-city operation concerning the high-profile silver swapping and heist case involving alleged corruption and smuggling.
The agency informed the committee that the accused had allegedly adopted a systematic modus operandi involving fabricated container seals, counterfeit packaging and the substitution of genuine silver with lead bars to conceal the stolen consignment.
According to the FIA, approximately 400 kilograms of silver had been swapped, of which 214 kilograms had so far been recovered. The case involved an estimated financial loss of Rs4 million.
The agency said legal proceedings had been initiated against the accused before competent courts, while investigations were continuing through digital and financial forensics, asset tracing and other measures to identify all those involved and recover the remaining silver.
The Director General of Safe City briefed the committee on how the operation was detected through surveillance cameras. He explained that when the consignment reached Lahore, the original silver had been replaced with lead bars through a carefully planned vehicle-swapping operation.
According to his briefing, an identical vehicle approached the consignment vehicle as it exited the airport and carried out the substitution. Replica boxes had also been specially prepared for the operation.
The individual responsible for manufacturing and supplying the replica boxes was apprehended after four weeks of investigation.
The DG Safe City rejected allegations of involvement by the surveillance authorities, arguing that their system had itself detected and exposed the operation.
Senator Abro appreciated the FIA’s professional approach, coordination and progress in the investigation, particularly the recovery of 214 kilograms of silver. He stressed the need to recover the remaining consignment and bring all those involved to justice.
The chairman also suggested that the incident deserved to be made into a film, proposing that a production highlighting the planning, execution and eventual detection of the theft through Safe City surveillance could be undertaken if dedicated filmmaking facilities were available in Sindh or Balochistan.
The meeting was attended by Senator Umer Farooq and senior officials of the relevant ministries and departments.
