ISLAMABAD: Mobile phones worth $7.19 million have been imported illegally without opening the letters of credit (LCs) or utilising the banking channel, disclosed a report of the Federal Board of Revenue (FBR) on Saturday.

A senior official of FBR said despite an unannounced ban on the import of mobile phones and their accessories by the State Bank of Pakistan (SBP), 52 Goods Declarations (GDs) worth $8.65m related to the import of mobile phones had been cleared between December 2022 and February, adding that these mobile phones have been imported in Completely Build Up (CBU) condition.

The FBR highlighted that only $1.46m was paid legally out of Pakistan through the banking channel. Whereas $7.19m flowed out of Pakistan illegally, however, the tax collecting body has not mentioned the mode of payments made to the suppliers in Dubai for the import of mobile phones.

Responding to a query about how could the FBR determine the amount repatriated illegally to the UAE, the official said the figures had been matched from the GDs and the quantity of IMEI number registration applications, which was also awarded by the FBR.

The GD is a custom online declaration form containing complete details of the quantity, unit price, payment terms of “goods” imported or exported from Pakistan.

“The matching of data shows that payment for mobile sets worth $7.19mn has not been made. Ther­efore, some illegal mode was adopted for these sets,” the official added.

Similarly, sources in the Pakistan Telecom Authority (PTA) confirmed to Dawn that manufacturers imported more than 190,000 mobile phones in CBU condition under a facility allowed to them.

In wake of the restrictions set by the banking sector on imports, mobile phones were still being imported by some companies under their manufacturing licence, the source said.

All imported phones have to get their IMEI numbers registered in Pakistan through the PTA which has received the Certification of Compliance (COC) from the commercial mobile phone dealers for the registration of IMEI numbers in bulk quantity. The import of mobile phones unusually surged in recent weeks with all the 30 manufacturing units in the country have been closed, as the government has banned the import of luxury items.

Responding to a question, a senior official from the IT ministry said the companies are allowed to import some mobile phones but the misuse of the facility would damage the investment climate in the country.

Published in Dawn, April 9th, 2023