The Federal Board of Revenue (FBR) claims 90% of the dollars are accumulated in Pakistan, while currency smuggling accounts for 10%.
FBR member Mukarram Jah Ansari told the local newspaper ‘The News’ that customs has increased vigilance at entry and exit points, including airports, to prevent currency smuggling.
Other regulators and law enforcement agencies must act against dollar speculation and hoarding. He said that the US dollar is cheaper in the neighboring country, but we’ve increased vigilance in border areas to curb terror financing.
Ansari said FBR seized dollars and Saudi Riyals. However, only 10% of dollars are smuggled, while 90% are accumulated.
The FBR member said the government is working to sign Electronic Data Integration (EDI) agreements with Russia and the UAE to reduce mis-invoicing and under-invoicing.
He discussed customs reforms to improve the tax agency’s performance. Pakistan and China signed an EDI agreement and exchanged electronic trade data.
China agreed to extend the quarterly aggregate value of goods, he said. As a result, bilateral trade data discrepancy is less than $3 billion, compared to over $6 billion per year a few years ago.
He said the customs department worked with PIDE to study mis-invoicing, under-invoicing, and smuggling to determine exact levels. He added that the studies’ results will be available by 2022-23.
He said the FBR would create a plan to stop misbilling and smuggling. Annual under-invoicing is estimated to cause multibillion-dollar economic losses.
FBR member says government will sign EDI agreements with Uzbekistan, Russia, North Africa, and UAE.
The agreement will involve Pakistan’s Single Window and China’s Single Window. Manual One Customs will be shut down by March 2023 and replaced by WeBOC.
Ansari said PSW work is underway, and 77 entities will be integrated for goods clearance at entry and exit points. PSW will soon include the SBP and commercial banks.
FBR members said an electronic application to control currency smuggling will be launched this month.
He said this application will help declare currency through an online application, and then scanning will share the complete information with customs departments at airports. He added that the customs took stern action against Kheppeas, over two dozen FIRs were registered, and persons involved were also arrested for penalizing currency smugglers.
Ansari told the collectorates to choose 10 cases in each jurisdiction per month to settle through the ADR Committee (ADRC). He said the barter trade mechanism would be finalized, promoting regional trade in Iran and other states.
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