Islamabad – On the eve of World Customs Day, ACT Alliance Pakistan commends the Government of Pakistan, the Federal Board of Revenue (FBR), and Pakistan Customs for sustained, visible, and intelligence-led enforcement against illegal trade that undermines Pakistan’s revenue base, weakens documented businesses, and damages investor confidence. World Customs Day is observed internationally on January 26, in recognition of Customs’ role in securing borders and enabling lawful trade.
Mubashir Akram, Country Director, ACT Alliance, said: “Pakistan Customs and FBR are demonstrating that illegal trade is not a side issue; it is a core governance challenge. Their recent operations show seriousness, professionalism, and operational courage, and that matters for the tax base, for fair competition, and for Pakistan’s economic credibility.”
ACT Alliance particularly welcomes the stepped-up efforts to curb illegal POL smuggling.
In Karachi, official communications reported the seizure of over 42,200 liters of smuggled Iranian diesel, valued at over Rs. 12 million, during an operation targeting illegal storage and sale along the Northern Bypass, with the recovered fuel moved into secure custody. In a separate maritime interdiction, Pakistan Customs reported intercepting three vessels carrying 132,564 liters of Iranian-origin high-speed diesel, with a seizure value of Rs. 78.14 million, described as a record-breaking recovery by the Marine Enforcement Unit. These actions protect lawful fuel businesses from unfair competition and help close a channel that routinely drains the exchequer.
The press release also recognizes intensified enforcement against illegal cigarettes and the illegal tobacco supply chain. Pakistan’s cigarette market remains highly sensitive to revenue and compliance because legal cigarettes carry substantial federal excise obligations, while illegal cigarettes erode revenues and weaken regulation. In November 2025, Customs Enforcement Multan reported seizures of smuggled cigarettes worth Rs. 21.134 million, including 10,701 outer packs and 2.14 million cigarette sticks during targeted anti-smuggling operations.
In parallel, Pakistan Customs reported multi-city operations targeting smuggled cigarettes and illegal raw materials used for illegal manufacturing, including seizures in Hyderabad involving Brazilian-origin tobacco and acetate tow, key inputs used in cigarette production.
ACT Alliance also welcomes the government’s policy direction to strengthen the Track and Trace System and expand electronic monitoring of production systems across additional high-risk sectors. Reporting in early January 2026 stated that after implementation in tobacco, sugar, cement, and fertilizer, FBR is planning monitoring and Track and Trace expansion to tiles, textile spinning, and Green Leaf Threshing units, with the FBR chairman citing an estimated Rs. 30 billion in annual tax evasion in the tiles sector, and revenue protection expectations linked with monitored production.
Mubashir Akram added, “Track and Trace is not only a technology project, but it is an enforcement multiplier. Tobacco, which remains among the most heavily tax-evaded sectors, needs consistent Track and Trace coverage backed by field verification, credible penalties, and sustained disruption of illegal supply chains. Pakistan’s progress will be measured by continuity, not by one-off actions.”
ACT Alliance urges continued whole-of-government coordination among FBR Inland Revenue, Pakistan Customs, provincial enforcement agencies, and district administrations to ensure that seizures translate into durable market correction. Sustained action against illegal POL and illegal cigarettes will strengthen the documented economy and reinforce a simple principle that investors require: compliance must not be a disadvantage.