A Senate subcommittee has framed the disappearance of over 2,800 cigarette cartons from government warehouses as a significant case of tax evasion rather than simple theft, placing Pakistan Customs under intense scrutiny for systemic failures in monitoring tax-exempt industrial zones.
According to a report by Senate committe today, the Sub-Committee of the Senate Standing Committee on Interior and Narcotics Control, convening under the leadership of Senator Saifullah Abro, deliberated on the matter concerning the missing 2,828 cartons of cigarettes from Federal Board of Revenue (FBR) godowns in Swabi and Mardan.
Senator Abro expressed grave unease over the performance of Pakistan Customs, highlighting a lack of effective checks and balances on sales originating from tax-free zones in the erstwhile FATA region. He observed that industrial units established to benefit local underprivileged populations were instead distributing their products across the entire country, exploiting tax concessions.
The Federal Investigation Agency (FIA) apprised the panel that its probe revealed serious irregularities. A security guard from the warehouse denied all allegations during interrogation, claiming he never possessed the keys. The FIA further disclosed what it termed a “serious lapse”: the warehouse in-charge had not been formally deputed by the department.
The inquiry has also focused on Paramount Tobacco Company, with Senator Abro directing authorities to furnish documentation related to the firm”s machinery imports. An FBR official from Peshawar informed the committee that the company had declared its machinery value at a mere Rs. 3.5 million in its 2018 returns, noting a common practice where such enterprises procure and refurbish second-hand equipment.
The subcommittee voiced its dissatisfaction with what it considered incomplete information provided by the FIA, which in turn assured that a comprehensive report would be presented at the subsequent meeting.
Tensions in the investigation were evident as FIA officials reported that the owner of Paramount Tobacco, after being summoned, had filed a petition in the High Court alleging harassment. In response, Senator Abro issued a stern directive that any individual failing to appear before the FIA after a summons should be arrested after seven days, in accordance with the law.
An FBR member stressed that identifying the ultimate beneficiaries of the missing cigarette cartons would be a critical step in resolving the case.
Pakistan Customs officials briefed the panel on measures to curb smuggling, noting that a significant proportion of such incidents occur in Balochistan. The committee instructed the agency to submit extensive details of all items seized in Khyber Pakhtunkhwa and Balochistan from 2012 to the present, along with a list of beneficiaries implicated in smuggling operations during that period.
Concluding the session, the Chairman reiterated his concern over the sale of goods at inflated prices in tax-exempt areas, emphasising that these economic incentives were being exploited by industrial units for nationwide distribution instead of their intended purpose of supporting local communities.