ISLAMABAD: The Federal Board of Revenue (FBR) has estimated that smuggling of petroleum (POL) products from Iran was causing Rs30 billion or $300 million losses to the national exchequer on annual basis, official estimates prepared by the tax machinery state.
The FBR has recommended the government for recruiting of staff/ officers for Balochistan on emergency basis, establishment of an independent single preventive Collectorate for uniformity of policies throughout the province, establishment of joint check posts at inter-provincial borders to check/ deter smuggling and to facilitate legal trade and to prevent undue stoppage en-route.
The FBR also asked the government for choking of main smuggling routes, Directorate General of Valuation may take Mosel Customs Collectorate (MCC) Quetta on board at the time of fixation of the value of import via land route from Iran, Iran-origin goods when imported via land route may be given a discount of 15-20% in value and Integrated TransitTrade Management System (ITTMS) project at Chaman for trade facilitation and effective controls.
There are certain main routes of smuggling from Afghanistan including Qamar-Din-Karez, Badini, Afghanistan-Toba Achakzai and Barabcha (Dalbandin) while from Iran the main routes for the purpose of smuggling include Taftan/Mashkhail/Panjgur-Noshki-Mastung/Quetta, Surab-Khuzdar-Karkh-ShahdadKot-interior Sindh.
Almost nine routes are used for POL smuggling including (1) route leading from Chidgee and Paroon combine at Panjgoor, (2) Panjgoor – Basima – Surab-Mastung-Quetta/Bolan (3) Panjgoor – Naagh - Khuzdar – M8 – Larkana (4) Gwadar – Karachi via costal highway. (5) Basima – Kharan – Noshki – Kanak-Kuchlak – Loralai – Zhob (6) Mand – Turbat – Gwadar – Awaran (7) Mastung – Kanak – Darkhshan (8) Mashkail – Dalbandin – Afghanistan and (9) via sea route through Gwadar – Pasni – Lasbella – Karachi.
According to official presentation of FBR’s Model Customs Collectorate (MCC) Quetta, Balochistan is the largest province of the country as it consists of about 44 percent area of the country. More than 3/4th of Balochistan’s area (35% land area of Pakistan) falls within jurisdiction of MCC Quetta.
Two international borders located here as bordering area with Afghanistan stands at 1165 kilometer and Iran 450 kilometer approximately and on this long terrain it was almost difficult to curb smuggling in an effective manner.
There are serious challenges for tax authorities to combat smugglers in the wake of volatile security environment, acute shortage of human and material resources as 240 staff/officers of customs posted and strength of FC along Pak-Iran/Pak-Afghan border stood at 30,000. The presence of Customs only at the two border crossing points of Taftan and Chaman. There is zero presence of Customs in the whole Sibi and Naseerabad Divisions.
The smuggling of POL products from Iran has caused estimated losses of Rs30 billion per year. The bordering areas of Balochistan with all three provinces possessed huge demand for taking steps against smuggled goods sneaking into Pakistan both from Afghanistan and Iran. It was also pointed out that the defective reward mechanism within the customs has also causing negative impression among the workforce and lack of national anti-smuggling strategy has also been impacting negatively.
The existing strength of Customs employees stood at 548 including 10 superintendents, 17 deputy superintendents, 106 inspectors and 415 drivers/ sepoys.