The federal government has ordered a three-year independent audit of customs bonded warehouses across Pakistan following concerns over rule violations and tax evasion, while Prime Minister Shehbaz Sharif has set October 1 as the deadline for the first phase of the FBR’s faceless tax system.
Shehbaz directed the Federal Board of Revenue (FBR) to conduct the third-party audit after a private company was allegedly found manipulating in-bond and out-bond rules for temporary gains. According to the Prime Minister’s Secretariat, the matter was investigated and has since been resolved.
Nationwide Stock Verification and Tighter Oversight Ordered
The prime minister also ordered a nationwide physical stock verification of bonded warehouses — privately operated facilities where goods are stored after customs clearance — and called for stronger measures covering their licensing, security, valuation checks, and IT systems.
Officials said bonded trade accounts for 16.5 percent of Pakistan’s total imports. The same meeting also reviewed monitoring of petroleum cargo through the WeBOC customs system, along with broader measures to strengthen enforcement against tax evasion, smuggling, and illegal businesses.
PM Warns of “No Room for Irregularities”
Shehbaz said there would be no tolerance for irregularities in customs bonded warehouses and directed that any officials found involved in illegal activity face strict legal action. He also instructed the FBR to appoint officers with strong reputations and integrity to sensitive posts within the organization.
Separately, the prime minister directed the FBR to speed up its broader reform program, asking the chairman and senior officials to spend two days each month in Karachi and Lahore to strengthen enforcement and support progress toward revenue targets.
Faceless Tax System to Launch October 1
The government has set October 1 as the date for the first phase of the faceless Inland Revenue system to go live. The technology-driven system will rely on artificial intelligence and digital tools for tax audits and assessments, with cases assigned randomly regardless of geographic jurisdiction.
The system will include a National Faceless Audit Wing responsible for tax audits and a Faceless Assessment Unit handling adjudication. Shehbaz directed the FBR to ensure the system is fully implemented nationwide by 2027.
Crackdown on Illegal Cigarette Factories
The meeting was also briefed on recent enforcement operations against illegal cigarette factories in Chakwal and Swabi, where authorities shut down the facilities and seized illicit stock and machinery as part of a broader push against tax evasion and unauthorized manufacturing.
