IMF concerned over rising fuel smuggling

Sources say IMF is worried that increased smuggling would result in a revenue shortfall

ISLAMABAD:

The International Monetary Fund (IMF) expressed concern over smuggling of 120,000 tons of petroleum products per month, and sought a report from the relevant authorities about the measures being taken by the federal government to curb this menace, Finance Ministry sources said on Tuesday.

The sources said that the IMF was worried that an increased smuggling of petroleum products would result in a revenue shortfall due to a fall in the import bill. It had urged the Pakistani authorities to stop the smuggling of 143 million litres of petroleum products per month.

Read more: IMF to urge China to shift growth model

“The IMF has sought a report from the Ministry of Finance and the FBR [Federal Board of Revenue] on the measures taken to curb the smuggling of petroleum products,” a ministry source said. “It has [also] demanded an increase in the number and capacity of customs and other personnel on the border.”

The sources said that the smuggling of petroleum products caused a loss of more than Rs10 billion in terms of customs and levies. They added that the IMF had also asked the FBR and the finance ministry to take steps to boost revenue.