ISLAMABAD: Smuggling of unlimited quantities of currency and major commodities particularly urea, wheat, sugar and oil products mostly at western borders allegedly under official patronage overwhelmed the proceedings of a parliamentary panel, with the government conceding the menace had become cause of such a grave concern that Prime Minister Shehbaz Sharif was looking into addressing the challenge.

The matter came up for discussion at a meeting of the Senate Standing Committee on Finance and Revenue, which also expressed concern over alleged misuse of anti-money laundering law by tax and law enforcement agencies against businessmen.

At the meeting, which was presided over by Senator Saleem H. Mandviwalla, Senators Farooq H. Naik, Anwar-ul-Haq Kakar and Kamil Ali Agha talked about widespread reports of smuggling of foreign currency and other commodities. They alleged one after the other that various agencies and forces deputed on borders were directly responsible for the smuggling, otherwise, movement of such large quantities could not take place.

Senator Kakar said a new situation had arisen particularly at Chaman and Taftan borders for a year and half as over 30m litres of Iranian diesel and petrol was being smuggled into Pakistan on a daily basis, while there was complete silence of criminal nature on the matter. He alleged deputy com­­missioners were issuing tokens against Rs40,000 per consignment and Rs10bn to 15bn amount was exchanged every month.

He said bigwigs and hidden faces of top influence were running this business in the name of unemployed youth in the province, but it was an open secret that instead of unemployed youth and poor people powerful and influential were involved in the game. “Is this the mandate of deputy commissioners? Who has given DCs such powers?” he questioned.

Rates for clearance

Senator Kamil Agha said each truck of smuggled goods had a fixed rate of Rs500,000 to Rs600,000, whereas between Rs100,000 and Rs300,000 was being charged for clearance at each checkpoint. He said two to three known markets were operating in all the major cities where smuggled goods were freely available.

Senator Naik and Agha asked the FBR and customs intelligence to explain why they had been unable to check the menace and deplored that Pakistan economy was passing through a critical phase but dollars were smuggled out unhindered while the prices of essential commodities were affecting the people of Pakistan, some people were making fortunes by exporting them illegally.

Minister of State for Finance Dr Aisha Ghous Pasha told the committee that smuggling had become such a challenge that the PM had personally taken notice of the situation and had constituted an inter-agency committee to prepare a multi-pronged strategy to overcome smuggling.

An official of customs intelligence told the committee that 43,000 bags of urea and 42,000 bags of sugar were confiscated from Khuzdar within three days and arrangements were being made to manage the posts thro­ugh joint teams of different agencies.

Published in Dawn, May 4th, 2023