PBC Raises Alarm Over FBR’s Transit Cargo Policy

The Pakistan Business Council (PBC) has expressed deep concerns about the Federal Board of Revenue’s (FBR) decision to end satellite tracking of transit cargo containers destined for Afghanistan.

In a letter to FBR Chairman Rashid Mahmood Langrial, PBC highlighted that relying solely on Customs for physical monitoring and placing tracking devices on trucks instead of containers increases the risk of cargo diversion.

The misuse of transit trade not only results in tax revenue losses but also undermines local industries and impacts employment. PBC reiterated its earlier recommendation to track containers beyond the Pakistan-Afghanistan border and ensure returning containers are empty. Without container-specific monitoring, there’s no guarantee against potential collusion and diversion.

PBC has urged the FBR to clarify how quickly technology to ensure secure transit will be deployed and what interim measures will be taken to prevent revenue losses. The council called for transparency in FBR’s “People, Process, Technology” approach to transforming transit cargo monitoring and protecting the formal sector of Pakistan’s economy.