Misuse of tax exemptions by FATA PATA importers has raised serious concerns among Pakistan’s industrial and trade community.
Karachi (NNP) – Faisal Moiz Khan, President of the North Karachi Association of Trade and Industries (NKATI), has voiced deep concerns on behalf of Pakistan’s importers and manufacturers of fabrics, blankets, tea, food items, and allied products regarding the interim relief granted by the Peshawar High Court in Writ Petition No. 5452/2025.
The court’s directive allows FATA/PATA-based importers and manufacturers to clear consignments without adhering to key Customs General Orders (CGOs), which require:
- Filing of Transshipment Permits (TP) at Karachi ports.
- Transportation through bonded carriers.
- Monitoring of vehicles under the Tracking and Monitoring of Cargo Rules 2012 from Karachi to Peshawar and factory sites.
- Clearance at nearest dry ports — Azakhel or Peshawar.
NKATI fears that this relief could lead to large-scale misuse, allowing importers from FATA and PATA to clear goods at Karachi, store them locally, and illegally sell them in Pakistan’s markets instead of transporting them to their designated areas for processing.
This malpractice, according to NKATI, abuses tax exemptions, causes revenue loss, and creates unfair competition for legitimate businesses operating within Pakistan.
Citing earlier cases, NKATI referred to a major scam detected by the Directorate General of Intelligence and Investigation-Customs, Karachi, involving Azad Jammu and Kashmir-based importers who had illegally sold black tea in Pakistan’s domestic market — evading taxes worth PKR 3 billion. The Adjudication Authority later confiscated the goods and imposed penalties on the offenders.
With the writ petition still pending, NKATI and affected industries have called upon the Government of Pakistan and the Federal Board of Revenue (FBR) to bring these violations to the attention of the Peshawar High Court. NKATI stated that it will formally raise the issue with the government, representing the concerns of Pakistan’s business community engaged in the affected sectors.
