Customs declaration, classification processes: PAC directs officials to conduct performance audit

ISLAMABAD: Expressing concern over unresolved recovery issues at the Federal Board of Revenue (FBR), a subcommittee of the Public Accounts Committee (PAC) directed audit officials to conduct a performance audit of Customs declaration and classification processes.

The subcommittee, chaired by Syed Naveed Qamar, reviewed audit objections pertaining to the Revenue Division for the period from 2011-12 to 2022-23.

When the issue of FBR recoveries came up for discussion, Convener Syed Naveed Qamar remarked that recovery issues required a proper procedure, adding, “If a recovery has not been made for five years, who is responsible? There must be a mechanism in place.”

Audit officials informed the meeting that the same systemic issues persisted regarding recoveries, while several cases were pending before courts, with matters involving approximately Rs10 billion currently sub judice. They also emphasised the need for a dedicated Recovery Management System.

The FBR chairman acknowledged that there might have been delays on their part, stating, “There must certainly be slowness on our end as well; however, the good news is that a further Rs 42 billion have been recovered.”

The committee directed the audit officials to conduct a performance audit of Customs, specifically including its declaration and classification processes.

The convener expressed dissatisfaction with the responses provided by officials regarding the audit objections, while the FBR chairman sought additional time to submit replies. Consequently, the committee referred the FBR-related audit objections back to the Departmental Accounts Committee.

Copyright Business Recorder, 2026