The government has initiated a fact-finding inquiry into a network of 78 alleged corrupt Customs officials and smugglers involved in smuggling goods from Quetta to Punjab and Islamabad. The move follows an intelligence agency report that identified key figures within the smuggling network, some of whom hold influential positions in the federal setup, The Express Tribune reported, citing official sources.
Federal Board of Revenue (FBR) Chairman Rashid Langrial has directed Member Customs to conduct an inquiry into the role of Customs officials and private individuals allegedly facilitating smuggling. The investigation, led by Chief Collector of Customs Enforcement Basit Maqsood Abbasi, is expected to conclude by the end of February.
The intelligence report suggests that 37 Customs officers and 41 smugglers were identified as part of the network involved in the illegal transportation of cigarettes, tyres, and textiles.Â
The network reportedly caused significant financial losses to the exchequer, with cigarette smuggling alone estimated to result in Rs250 billion ($900 million) in lost revenue annually.
Additionally, authorities suspect that smuggling profits may have been transferred abroad, though it remains unclear whether the Customs-led inquiry will extend to tracing these funds. A government official suggested that a higher investigative body may need to step in for a more thorough probe, including assets held overseas.
The FBR and military establishment have intensified efforts to combat smuggling, with new anti-smuggling posts being established along the Indus River. The crackdown is part of a broader strategy to curb illegal trade, which undermines local industry and weakens the economy.
Meanwhile, the International Monetary Fund (IMF) has imposed conditions requiring the public disclosure of civil servants’ income tax returns and wealth statements. The move aims to address concerns over unexplained wealth among officials, though the requirement excludes officers of autonomous regulatory bodies such as the State Bank of Pakistan, NEPRA, OGRA, and PTA.
Pakistan currently ranks 72nd out of 84 countries on the Global Illicit Trade Environment Index, as reported by the Transnational Alliance on Combating Illicit Trade (TRACIT) and the Economist Intelligence Unit.Â
Estimates suggest that illegal trade, smuggling, and tax evasion collectively cost the national exchequer between Rs1.5 trillion and Rs2 trillion annually.
