Smuggling causes Rs750 billion loss, FBR plans Rs250 billion recovery through digital enforcement

Finance panel reviews Rs 49.22 billion PSDP allocation as customs officials outline anti-smuggling strategy.

The Federal Board of Revenue (FBR) has reported that smuggling is causing an estimated Rs750 billion loss to the formal economy, as it outlined plans to recover Rs250 billion through the rollout of Digital Enforcement Stations.

The matter came under discussion during a meeting of the National Assembly Standing Committee on Finance, which reviewed the proposed Public Sector Development Programme for 2026-27. The FBR has been allocated Rs 49.22 billion under the PSDP for the next fiscal year.

FBR Member Customs (Operations) Shakeel Shah informed the committee that anti-smuggling operations in Balochistan had generated additional revenue of Rs 188 billion from the petroleum sector. He said smuggling has disrupted domestic markets, undermined legitimate businesses and contributed to a parallel economy.

He stated that conventional enforcement methods have delivered limited results due to security concerns, geographic challenges and resource constraints. As part of the new approach, 25 digital customs stations have been established and 10 strategic check posts in Balochistan have been upgraded.

The proposed Digital Enforcement Stations will use technology to track and monitor vehicles and goods to prevent illicit trade. Under the Finance Act 2025, the FBR is authorised to notify locations as Digital Enforcement Stations through the official Gazette.

The law also empowers the Board to designate existing customs check posts as digital stations and to frame rules governing staffing, operations and technological systems for these facilities.