Under-invoicing in trade from China to Pakistan reduced, NA body told

ISLAMABAD: The National Assembly’s Standing Committee on Finance has unanimously decided to submit breach of privilege motion against Adviser to PM on Finance Dr Abdul Hafez Shaikh before the Lower House if he did not bother to attend next meeting of the NA Panel.

The ruling party MNA Faheem Khan grilled the Federal Board of Revenue (FBR) over valuation rates of different products after which the FBR high-ups told the committee that the under invoicing of ongoing trade between China and Pakistan has reduced from $5 billion to $2 billion per annum and around $900 million of it were related to fabric.

The National Assembly Standing Committee on Finance held its meeting under chairmanship of Faizullah Kamoka here at the Parliament House on Tuesday. The FBR Chairman Javed Ghani told the committee that China was providing live data under Free Trade Agreement (FTA), but for the products outside the FTA mode the provision of exchange of data was not much frequent. He said that under Shanghai Cooperation Organisation (SCO), where China is also part of it, had refused to share the data, but China had agreed with Pakistan that where Islamabad would request in individual cases, China would share data on preferential basis.

On the issue of absence of PM’s adviser on finance, the chairman would write letter to Abdul Hafeez Shaikh for apprising him that members belonging to both treasury and opposition benches were not happy over this attitude.

The committee decided not to take up legislative business until its custodian, including Ministry of Finance and SBP high-ups, did not participate into the deliberations of the NA panel. The committee members also decided that the minister-in-charge would also be summoned as it was pointed out that this portfolio rested with Prime Minister Imran Khan. The committee also expressed concern over absence of secretary finance, representative of State Bank of Pakistan and President National Bank of Pakistan and decided to serve them notices showing displeasure.

While showing dissatisfaction over findings of the Joint Investigation Team (JIT) on alleged Torkham border scandal, the committee directed the FBR chairman to come up with detailed report and action taken against those involved in this alleged scam.

The FBR told the committee that the JIT submitted its finding before the FBR in May 2020 that found that out of 441 trucks, there were 113 trucks that were cleared with payment of duty/taxes. As many as 22 clearing agents were arrested, while Customs staff was transferred out from Torkham border.

The customs inspectors, appraisers, gate out operators, examiner, appraising staff, and principle appraiser were found guilty of negligence and served show cause notices, whereas no evidence was found against additional collectors and other officers. The committee members termed this report as hush-up effort to bury down this scam without taking any action.

The committee chairman said that he was dissatisfied with the findings of this JIT so he inquired about the report prepared by the FIA. He directed to submit findings of the FIA and other intelligence agencies.