Senate panel orders probe into Rs222 million seized fuel, questions smuggling lapses

The sub-committee of the Senate Standing Committee on Interior and Narcotics Control, chaired by Senator Saifullah Abro, has directed Customs authorities to submit a detailed report on the whereabouts of petroleum products worth Rs222 million seized over the past five years, amid concerns over smuggling and weak enforcement.

The panel also reviewed the alleged theft of 2,828 cartons of cigarettes from FBR warehouses in Swabi and Mardan.

Members highlighted ongoing petroleum smuggling, particularly in Balochistan, and called for coordinated action to address the issue.

A Customs official informed the committee that 75,000 litres of diesel were seized in Hub recently, with additional quantities confiscated in Hyderabad. However, the official said Customs has no operational presence along the Iran border or in districts such as Panjgur, Gwadar, Kech and Washuk, limiting enforcement to settled areas.

The committee was told that up to 3 million litres of petroleum products per day are currently allowed for import from Iran for local consumption, compared to an earlier limit of 6.5 million litres. Officials also noted that major oil marketing companies are not active in several parts of Balochistan.

Members raised concerns over price variations, noting that diesel is being sold at around Rs240 per litre in Quetta and Rs210 in rural areas.

The Federal Investigation Agency (FIA) briefed the committee on the cigarette theft case, stating that an inquiry report has been prepared and notices issued to relevant authorities. A letter has also been sent to the Chief Secretary of Balochistan regarding petroleum-related issues.

The committee directed that the Balochistan chief secretary be summoned to provide a briefing on measures to control smuggling.

Separately, the panel discussed tax exemptions in former FATA and PATA regions, noting that these areas have become hubs of smuggling and tax evasion.

The committee also referred a case involving alleged embezzlement of Rs1.28 billion in the 765kV Dasu–Islamabad transmission line project, directing the FIA and National Accountability Bureau to take action against those involved.

The convener further instructed that Pakistan State Oil be asked to provide detailed data on petroleum supplies to Balochistan, including transportation costs paid to tanker operators.