Faisal Moiz Khan, President of the North Karachi Association of Trade and Industries (NKATI), has expressed serious concerns on behalf of Pakistan’s importers and manufacturers of fabrics, blankets, black tea, green tea, food items, and allied products regarding the interim relief granted by the Honourable Peshawar High Court in Writ Petition No: 5452/2025. The court’s directive allows FATA/PATA-based importers and manufacturers to clear consignments without complying with Customs General Orders (CGOs), which mandate:

1. Filing of Transshipment Permits (TP) at Karachi Ports.
2. Transportation of goods through bonded carriers.
3. Monitoring of vehicles under the “Tracking and Monitoring of Cargo Rules 2012” from Karachi to Peshawar and factory premises.
4. Clearance of goods and raw materials at the nearest dry ports, i.e., Azakhel and Peshawar.

Pakistan’s importers and manufacturers fear that FATA/PATA-based entities may exploit this relief by clearing goods at Karachi, storing them in local warehouses, and illegally selling them in Pakistan’s markets instead of transporting them to FATA/PATA for processing. This practice not only misuses tax exemptions but also creates unfair competition, undermining legitimate businesses in Pakistan.

Citing past instances of abuse, NKATI highlighted a major scam detected by the Directorate General of Intelligence and Investigation-Customs, Karachi, involving importers based in Azad Jammu and Kashmir. These importers illegally disposed of black tea in Pakistan’s local markets, evading taxes worth PKR 3 billion. The case resulted in the confiscation of goods and penalties imposed on the importers and their clearing agents by the Adjudication Authority.

With the writ petition still pending, NKATI and affected importers/manufacturers urgently call on the Government of Pakistan and the Federal Board of Revenue (FBR) to inform the Honourable Peshawar High Court of these violations and the detected cases of tax evasion by FATA/PATA-based entities. NKATI will formally raise this issue with the government, representing the concerns of Pakistan’s business community engaged in these sectors.