Islamabad: A meeting of the Sub-Committee of the Senate Standing Committee on Interior and Narcotics Control was held today under the convenership of Senator Saifullah Abro. The meeting was attended by Senator Talha Mahmood, Senator Umer Farooq, Senator Dilawar Khan, and Senator Rana Mahmood ul Hassan, along with senior officials of relevant departments.
The meeting focused on the performance of the Federal Board of Revenue (FBR) in the matter of tax evasion. The committee also examined progress on action taken regarding the management of confiscated goods.
The committee was informed that it had previously sought details from the FBR regarding the issuance of consumption certificates to factories operating in the tax-exempt areas, along with the taxes paid by each tobacco company. FBR officials stated that while the overall position could be shared with the committee, Section 216 of the Income Tax Ordinance prohibits the disclosure of individual taxpayers’ records. They maintained that under the existing law, individual tax details cannot be shared with any external forum, although consolidated sector-wise information can legally be provided.
On the directions of the committee, the FBR submitted a detailed industry-wise report on consumption certificates and revenue data.
According to the FBR report, the highest number of cases during the last six months was reported in the ghee sector, with 26 cases involving Rs 57.586 billion. The steel sector accounted for eight cases involving Rs 7.517 billion, while the textile sector recorded 11 cases involving Rs 5.920 billion. Three cases in the plastic industry involved Rs 1.267 billion, while 15 cases in the food sector involved Rs 1.259 billion.
The committee noted that recent statements by the Prime Minister and the Defence Minister on revenue losses resulting from tax exemptions had made the matter one of significant public importance.
Senator Dilawar Khan questioned the credibility of consumption certificates issued to the ghee and steel sectors. He stated that the Information Department and certain companies had misled the Prime Minister, the Defence Minister, and the Information Minister regarding the issue of cigarette tax evasion.
Senator Dilawar Khan alleged that confiscated goods worth Rs 300 million had been shifted from a government warehouse to a private facility and claimed that the inspector or watchman responsible for security was himself involved in the illegal transfer.
Chairing the meeting, Senator Saifullah Abro directed that the department itself should determine responsibility for the alleged embezzlement, warning that if accountability was not ensured, the matter would be referred to the FIA. He stated that the Senate Committee serves as the eyes and ears of the Senate and that Parliament has every constitutional right to investigate wherever theft, corruption, or irregularities occur.
Senator Saifullah Abro stated that no institution or officer is above the law. He added that the committee was working to assist the FBR in identifying tax evasion, recovering unpaid taxes, and depositing national revenue into the public treasury.
The Convener questioned how imported textile goods worth Rs 154 billion, brought into the country under tax exemptions, could realistically have been consumed in FATA. He also pointed out that the Federal Government allocates approximately Rs 100 billion annually to FATA and questioned why tax evasion should continue in the name of the region if such practices were taking place.
Senator Saifullah Abro questioned why the FBR was reluctant to provide information regarding the matter in question, further stating that those involved in tax evasion and misrepresentation should not only pay the due taxes but should also face substantial financial penalties.
The Convener emphasized that the committee has no personal interest in any individual or organisation and that its sole objective is to strengthen national tax collection and protect public revenue. He reiterated that the committee was extending full support to the FBR to ensure that national resources are safeguarded from theft and revenue leakages.
Senator Talha Mahmood observed that tea worth Rs 62 billion had reportedly been imported, yet corresponding consumption certificates were not reflected in the available records.
Senator Dilawar Khan questioned whether any internal audit had ever been conducted on the consumption certificates issued by the department and asked whether any disciplinary action had ever been taken against officials responsible for issuing incorrect certificates.
FBR officials informed the committee that complete tax return and payment data for the financial year ending June 30, 2026, would become available by July 18, 2026. They also assured the committee that the next meeting would include comprehensive data regarding actual tobacco production, documented and undocumented goods, and manufacturing taking place outside the tax net.
The committee directed the FBR to compile complete return data. It also directed the FBR to develop a lawful mechanism for providing consolidated information to Parliament without violating statutory confidentiality provisions. The committee again sought combined details of ghee and steel factories, along with consumption figures for FATA and PATA, and directed the Ministry of Law and Justice to present its final legal opinion related to the disclosure of information at the next meeting.
FBR officials informed the committee that several businessmen had obtained stay orders from the Peshawar High Court against the encashment of pay orders. They stated that the Court had directed the FBR to hear the affected parties before proceeding further. Officials further informed the committee that, out of textile imports valued at Rs 154 billion, pay orders worth only Rs 5.9 billion had so far been encashed, while approximately Rs 145 billion remains under scrutiny.
The committee noted that following the emergence of the matter, comprehensive scrutiny of the relevant factories had commenced. Members stressed that investigations into the tobacco, cigarette, and other industrial cases should be pursued to their logical conclusion without exception.
During deliberations on the warehouse disappearance case, FIA officials informed the committee that notices had been issued to all concerned officers, from the Commissioner to the Inspector level, and presented the names of individuals currently facing investigation.
The committee directed the FBR to submit a comprehensive report detailing the submission dates of pay orders, their present status, and all cases currently pending before the Peshawar High Court.
During the briefing, the Chairman of the FBR Fact-Finding Committee stated that confiscated goods had been shifted from one warehouse to another due to a shortage of storage space. The committee questioned the explanation, describing the transfer of seized goods from a government warehouse to a private facility as a pre-planned conspiracy. Members observed that all seized goods had originally been stored at a single government warehouse, making the subsequent justification of a lack of space untenable.
Concluding the meeting, the committee reiterated that if the required information is not provided by the FBR, the matter will be raised on the floor of the House. The committee also directed the FBR to identify and bring to justice all officials responsible for the disappearance of confiscated goods from Customs warehouses and reaffirmed its commitment to ensuring transparency, institutional accountability, stronger border controls, and the protection of the national exchequer.
