A Senate committee has demanded fuller investigations into the theft of 2,828 cigarette cartons and an estimated $1 billion in annual tobacco-sector revenue losses. It also criticised the nomination of lower-ranking officials in the case and called for accountability to focus on those responsible and the main beneficiaries.
The Senate Standing Committee on Interior and Narcotics Control, chaired by Senator Faisal Saleem Rehman, directed the Federal Board of Revenue (FBR) and the Federal Investigation Agency (FIA) to submit comprehensive inquiry reports within one month.
Committee questions accountability
The committee asked for verified physical stock registers covering seized warehouse goods and said future enforcement action should target factory owners and other main beneficiaries rather than field personnel alone. It also directed the FIA to provide an update on the investigation.
The discussion followed a sub-committee report presented by Convener Senator Saifullah Abro. The report examined an estimated $1 billion annual revenue loss linked to tax evasion, illicit manufacturing and trade-related malpractice in the tobacco sector. It also covered factories operating in tax-exempt areas, including FATA, PATA and Khyber Pakhtunkhwa, as well as the cigarette theft case.
Concerns over cases and warehouse records
Members questioned the handling of tax-exempt raw materials imported into the former FATA and PATA areas. According to the Senate, the value of these imports reached Rs 1,120 billion between 2018 and 2026; the committee raised concerns about consumption certificates and whether factory owners and senior officials were being held accountable.
Senator Talha Mahmood raised concerns about the registration of cases, saying that people identified in preliminary inquiries were not included in the final charges in some instances.
The committee also examined FBR warehouse procedures and found reported gaps involving unavailable closed-circuit television footage, missing inventory ledgers and unverified handovers of confiscated goods.
FIA and FBR coordination examined
Members discussed the legal basis for the FIA conducting independent tax inquiries involving FBR matters. The committee directed the two institutions to establish a coordinated operational mechanism.
It also reviewed notifications giving the Frontier Corps and Pakistan Rangers anti-smuggling authority in border areas in FATA and PATA. The state minister and Interior Ministry officials said these powers had been delegated because of complex local law and order conditions.
The committee decided to continue examining the reported tax evasion and its impact on the national exchequer. It also agreed to form a sub-committee for further investigation.
Source: The News; report by Asim Yasin. Adapted for Smoke Free News.
Key takeaway
The Senate committee has sought detailed reports and further investigation into cigarette theft, tobacco-sector revenue losses and reported enforcement weaknesses, while pressing authorities to pursue senior responsibility and main beneficiaries.
Frequently asked questions
What did the Senate committee investigate?
It examined the theft of 2,828 cigarette cartons, estimated tobacco-sector revenue losses, alleged tax evasion and illicit manufacturing, warehouse controls, and enforcement arrangements in tax-exempt and border areas.
What did the committee ask the FBR and FIA to do?
It directed both institutions to submit comprehensive inquiry reports within one month and establish a coordinated operational mechanism.
Why did members criticise the FIR?
Members were dissatisfied that lower-ranking officials had been nominated in the FIR and argued that officers responsible, factory owners and main beneficiaries should also face accountability where supported by the investigation.
What warehouse problems were reported?
The committee’s review identified reported gaps involving unavailable CCTV footage, missing inventory ledgers and unverified handovers of confiscated goods.
Was the matter finally resolved?
No. The committee decided to continue pursuing the issue and form a sub-committee for further investigation.
Source Acknowledgement
Reporting by Asim Yasin, published in The News under the supplied source headline, “Senate panel takes up cigarette theft, $1bn annual tobacco tax loss.” Adapted independently for Smoke Free News; the source is credited for the reported information.
Source: The News
- Author
- Asim Yasin
- Published
- 24 Sep 2026
- Last verified
- 24 Sep 2026
