Illegal trade: FBR seeks funds, powers to curb smuggling

Militant wings of political parties involved in smuggling, says DG intelligence & investigation customs

ISLAMABAD:

The Federal Board of Revenue (FBR) is seeking secret funds and powers – to access digital data and phone conversations – to curb the growing menace of smuggling amid suspicion that militant wings of political parties are involved in the illegal practice.

In a presentation that it will share with the Tax Reforms Commission next week, the FBR’s directorate general of intelligence & investigation customs has claimed that the militant wings of political parties, as well as sectarian and nationalist forces are patronising smuggling in Pakistan. However, it has not named any party that has a militant wing or one that was using it for illegal activities.

The smuggled goods are often stored in warehouses in settled areas particularly Shah Alam market in Lahore and Saddar market in Rawalpindi, according to the intelligence wing’s findings. The whole of Balochistan and Khyber-Pakhtunkhwa (K-P), Interior Sindh as well as Lyari in Karachi are havens for smugglers, shows the presentation.



It also claims that the government is sustaining heavy losses due to increased smuggling, and the smuggled proceeds are used for financing terrorist and sectarian groups. Smuggling is also a source of increasing supplies of illegal weapons in the country and money laundering, it adds.

Arms and ammunition, drugs, Iranian oil, cigarettes, fabrics, vehicles, chemicals, tyres, electronic goods and black tea are among commonly smuggled items.

The authorities have sought allocation of secret service funds for purchasing information from informants, access to digital data and wire-tapping of smugglers and their abettors to curb the menace.  The smuggling has become an important source of providing funds and weapons to the terrorists, it says.

However, critics argue that smuggling is more an issue of weak enforcement of law than lack of administrative powers and that any new powers to the customs will further corrupt the officials.

Sources claimed that the border crossings at Wagah, Tharparkar and Chaman were dens of smuggling, where the illegal activities are going on allegedly in connivance of the corrupt elements in customs and other departments.

The FBR has suggested that a Cabinet Committee on Anti-Smuggling may be constituted to discourage smuggling. It has suggested that the committee should be headed by a finance minister. In addition, regional cooperation mechanisms have to be established in Lahore and Karachi to better coordinate the activities.

Customs officials are also seeking allocation of resources for the establishment of new check posts and upgrading of existing forces at Hub, Jacobabad, Sukkur, Hyderabad, Sadiqabad, DG Khan, Kohat, Abbottabad and Gilgit-Baltistan.

It is demanding legislative changes to declare misdeclaration of goods as smuggling. Further, it has sought pooling of resources of federal and provincial law enforcement agencies. Customs authorities want to be declared as the country’s main anti-smuggling agency. By amending rules of business, the anti-smuggling operation may be transferred to the finance ministry from the Interior ministry.

It has also sought setting up a Customs Border Force and creation of an Enforcement Collectorate in the Federally Administered Tribal Areas (Fata).  The customs intelligence found that corruption within the law enforcement agencies as well as long porous borders with Afghanistan and Iran are the main causes of increased smuggling.

Published in The Express Tribune, December 14^th, 2014.