ISLAMABAD: A Senate subcommittee on Tuesday directed the Federal Board of Revenue (FBR) to present complete records of consumption certificates, payments and verification documents at an in-camera meeting on Nov 16.

The committee is investigating the alleged misuse of the Fata/Pata tax exemption scheme, involving imports worth Rs1,120 billion, and the recovery of evaded taxes.

The meeting of the Subcommittee of the Senate Standing Committee on Interior and Narcotics Control was held under the chairmanship of Saifullah Abro.

At the outset, the chairman expressed serious displeasure over the absence of the Director General of the National Cyber Crime Investigation Agency (NCCIA), questioning the non-serious attitude of the authorities, particularly when it had already been decided in the previous meeting that the DG would brief the committee.

Senate panel seeks consumption certificates, payments and verification documents at in-camera meeting on Nov 16

During the briefing, representatives of the FBR and the Federal Investigation Agency (FIA) presented their respective positions.

The FBR maintained that it had not received any formal notice from the court, whereas the FIA informed the committee that its legal adviser had received the relevant court order. The chairman and members expressed concern over the apparent lack of coordination and questioned why the FBR had remained unaware of the court proceedings for nearly two months.

The committee was briefed on the reconciliation gap between customs import data and consumption certificates for the period from 2018 to June 2026. It was informed that total imports amounted to Rs1,120.66 billion, against which consumption certificates covered imports worth Rs389.86bn, leaving an apparent unreconciled difference of Rs730.79bn.

The sector-wise analysis revealed apparent differences of Rs148.248bn in steel, Rs146.95bn in textile/fabric, Rs100.88bn in food, and Rs76.48bn in ghee and oil. The committee emphasised the need for a comprehensive, transaction-wise reconciliation to ascertain the actual position and determine any potential tax liability or revenue loss.

The FIA informed the committee that 512 notices had been issued to various companies in connection with the ongoing investigation, out of which 19 companies joined the proceedings with partial records, while more than 100 notices were returned or remained undelivered. The matter is under examination before the competent court, and proceedings are investigative in nature, aimed at obtaining relevant documents and explanations. Possible corruption, abuse of authority, diversion and wrongful release of securities are being independently examined in accordance with the law.

The chairman was also briefed about the FBR’s reluctance to share relevant records with the parliamentary committee, particularly when the department was prepared to provide information to the court and other authorities.

Referring to Article 66 of the Constitution, Mr Abro questioned the legal basis for withholding information from parliament and asked the FBR to clarify which authorities such records could be disclosed to. The members stressed that parliamentary oversight must be respected and that legal provisions should not be used to delay accountability.

The committee also examined the details of consumption certificates and payments released against them. It was observed that out of 223 companies, consumption certificates are expected to have been issued for 60 companies. The chairman sought a comprehensive explanation of the certificates, the amounts released against them and the supporting documentation.

He particularly highlighted 20 certificates involving approximately Rs64bn and directed the FBR to provide complete details, including records and justification for their issuance. He further referred to the terms of reference concerning approximately Rs74bn and questioned the release of payments without adequate verification and scrutiny.

Expressing serious concern over the financial implications, the chairman observed that the alleged tax liability associated with the matter could be substantial and that the state must recover every rupee legally due.

Published in Dawn, November 11th, 2026