ISLAMABAD: Regular imports of smuggle-prone items grew significantly in the first five months (July-November) of the current fiscal year, owing to tighter enforcement against products entering the domestic market duty-free and more effective measures at ports to curb under-invoicing.

The shift has translated into higher customs duty and tax collection at the import stage, while also easing pressure on domestic manufacturers who have long struggled to compete with untaxed and under-priced goods entering the market through illegal routes.

Official data available with Dawn showed a substantial rise in the value of regular imports of items traditionally associated with smuggling, pointing to the impact of tighter enforcement and improved scrutiny at ports.

The import value of tyre imports increased 56.90 per cent to Rs4.383 million in 5MFY26 from Rs2.793m in 5MFY25.

Strict enforcement and port scrutiny push traders towards formal channels

Fabric imports surged 67pc to Rs159.387m from Rs95.215m, marking one of the largest absolute gains during the period.

Imports of toiletries and cosmetics climbed 78pc to Rs29.156 in M5FY26 from Rs16.372m in 5MFY25. The value of electronics imports surged 107pc to Rs14.185m from Rs6.852m. Betel nut imports increased 46pc to Rs10.071m from Rs6.880m in 5MFY25.

The value of edible imports rose to Rs156.579m in 5MFY26 from Rs155.915m in 5MFY25, indicating limited movement in this category.

The overall rise in documented import values suggests a shift away from informal channels toward regular trade, contributing to higher duty and tax collection while easing competitive pressure on domestic producers from untaxed goods entering through smuggling routes.

Enforcement measures

The FBR vide SRO 1637 of 2024 created a more integrated command-and-control structure with clearer jurisdictions and stronger coordination mechanisms through a consolidated national framework. This new setup was created on Oct 18, 2024.

Official data showed that the Customs Intelligence department recorded seizure values of Rs66.396 billion in 16,990 cases during the period from November 1, 2023 to Oct 31, 2024, when the old operational setup was in place.

From November 2024, FBR reorganised the formation, replacing the earlier structure with a new Customs Enforcement setup.

According to official data, seizure values increased to Rs91.186bn in 17,183 cases between Nov 1, 2024 and Oct 31, 2025. A comparison of the two periods shows a 37pc increase in the value of seizures, while the rise in the number of cases remained marginal.

The case volume remained stable, while average value per case rose from about Rs3.91 million to Rs5.31 million (about 36pc improvement), indicating higher-quality targeting.

Moreover, coordinated raids resulted in recoveries across cigarettes, gutka, China salt, acetate tow, narcotics and tyres, reflecting broadened footprint and responsiveness to emerging trends.

The post-November 2024 period demonstrates a marked improvement in outcomes, particularly in seizure value, indicating stronger targeting and higher-impact interdiction, according to customs officials.

Under-invoicing

The enforcement formations also thwarted attempts of mis-declaration and under-valuation by unscrupulous importers/agents and made out huge seizures/contraventions during the year under review.

According to official data, enforcement units operating inside and outside ports detected 174 cases of misdeclaration between November 1, 2024 and Nov 30, 2025, involving goods valued at Rs30.459 billion.

The duty and taxes evaded in these cases were assessed at Rs1.375bn, highlighting the extent of revenue leakage uncovered through enforcement acti­ons during the period.

Published in Dawn, January 4th, 2026