Pakistan Business Council urges the FBR to resume satellite tracking of Afghan transit cargo
The Pakistan Business Council (PBC)
has strongly urged the Federal Board of Revenue (FBR) to reinstate satellite
tracking for transit cargo containers bound for Afghanistan.
In a letter, the PBC raised concerns
about FBR’s recent decision to discontinue satellite tracking, highlighting the
increased risk of cargo diversion. The reliance on Customs resources to
physically monitor container movements, combined with placing tracking devices
only on prime mover trucks, instead of the containers themselves, will make it
easier for containers to be switched or diverted, the letter stated.
The PBC emphasized that the misuse
of transit trade arrangements results in significant tax revenue losses,
undermines local industries, and affects employment opportunities in Pakistan.
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The council has repeatedly
recommended measures to curb such diversion, including tracking containers
beyond the Pakistan/Afghanistan border and ensuring that returning containers
are empty. Without monitoring devices on the locks of the containers, there is
no way to guarantee that the prime mover trucks will transport the intended
cargo—containers may be switched through collusion.
PBC questioned the FBR on how
quickly the necessary technology can be deployed to ensure that transit cargo
leaves Pakistan and does not return. “How will the interim process and the
people you intend to involve provide sufficient assurance regarding tax revenue
loss and its impact on the formal sector in Pakistan?” the letter stated.
The PBC's letter underscores the
urgent need for effective oversight mechanisms to prevent the misuse of transit
trade, safeguard tax revenues, and protect the interests of Pakistan’s formal
economy.
Source: Pro Pakistani