The long-standing route of billions of rupees in tax evasion under the name of tribal areas has finally been blocked. Machinery and goods were being sold in other cities after availing tax concessions. Under the new system, clearance will now be allowed only at Azakhel.
A decision has finally been made to stop the annual billions worth of manipulation carried out for years under the tax concessions given to industries in the former tribal areas, and the FBR has issued a new strict procedure. In the Customs General Order (CGO) No. 08/2025 issued on November 27, 2025, major amendments have been made to the two-decade-old CGO 12 of 2002, and the import procedure for FATA/PATA industries has been completely changed.
Investigations revealed that these concessions were not used for their actual purpose — the economic development of the tribal areas — but were instead systematically exploited. Numerous importers created fake industrial addresses and documents to import machinery, equipment, and industrial raw materials at extremely low tax rates. These items were cleared at Karachi port in the name of FATA/PATA but were practically sold in major markets of the country, especially Karachi, yielding massive profits.
The Collectorate of Customs Peshawar brought this large-scale irregularity to the notice of the Peshawar High Court and informed the court of the huge losses being caused to the national exchequer and law-abiding industries. The court acknowledged the seriousness of the issue, but due to the absence of the required amendment order from the FBR, the concerned institutions were unable to take effective action.
According to sources, the biggest blow from these concessions was suffered by the local edible oil industry, as markets were flooded with cheap imported oil that avoided taxes. The textile and steel industries were also severely affected because tax-exempt imported products made it nearly impossible for them to compete in the market.
However, under the newly issued CGO by the FBR, all controlled cargo for FATA or PATA industries will now be cleared exclusively at the Azakhel Dry Port near Peshawar. This means the facility of direct clearance from southern seaports has been abolished. Additionally, the transportation of imported goods to the tribal areas will only be carried out through authorized and licensed bonded carriers. Their vehicles will be monitored at all times under the Cargo Tracking and Monitoring Rules 2023. Where electronic tracking is not possible, customs officials will accompany the consignments themselves and supervise their delivery to ensure that no goods go missing or are sold illegally during transit.
