The Federal Investigation Agency (FIA) has intensified its probe into an alleged tax evasion scheme worth Rs. 1,120 billion, in which goods imported under tribal area tax exemptions were allegedly diverted to markets in Punjab, Sindh and Balochistan instead of staying within the designated regions.

How the Scheme Allegedly Worked

The imports were brought into the country under tax-exempt facilities meant specifically for the Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA). Instead of keeping the goods within these designated areas, companies allegedly moved them into other provinces, where they were sold in regular commercial markets without the applicable taxes having been paid.

Breakdown of Diverted Goods

Investigators have traced the diverted imports across several major categories: cooking oil and ghee worth Rs. 371 billion, steel worth Rs. 214 billion, textile products worth Rs. 174 billion, and tea worth Rs. 65 billion, together accounting for a significant share of the total amount under investigation.

A total of 108 companies have been accused of tax avoidance through misuse of the tribal area exemptions. The FIA has collected transaction records as part of its widening inquiry and has recorded statements from more than 60 companies so far. An additional 48 companies have received fresh notices as the investigation continues to expand.

The agency’s inquiry centers on the alleged misuse of tax exemptions and the unauthorized movement of imported goods outside the areas where they were legally permitted to be sold. Given the scale of the amount involved, over a trillion rupees, this investigation ranks among the larger tax evasion probes currently active in Pakistan, and its outcome could have significant implications for how tribal area import exemptions are monitored and enforced going forward.

For more on related developments, see our coverage of the Finance Minister’s remarks on Pakistan-UAE relations and SBP’s unchanged interest rate decision.