Audit Detects Abnormal Increase in Afghan Transit Trade Cargo in FY23

The Auditor General of Pakistan (AGP) detected an abnormal increase of 69 percent in Afghan transit trade cargo during 2022-23 despite no change in Afghan demand for these items. The AGP also pointed out that the abnormal increase of 69 percent in Afghan transit trade cargo during 2022-23 is correlated with restrictions imposed by the government of Pakistan on its own import of non-essential and luxury items. Thus, the goods intended for Afghanistan or pilfered en route were smuggled back to Pakistan due to weak tracking, monitoring, and surveillance of transit cargo. In its latest report, the AGP has detected irregularities of Rs 737.868 billion in the collection and recovery of direct and indirect taxes during 2022-23. According to the AGP’s new report (the audit year 2023-24), audit observations of Rs. 737.868 billion were raised due to the FBR audit in 2022-23. The breakdown of data revealed that the direct tax irregularities stood at Rs. 616.181 billion. The irregularities on the indirect taxes side (sales tax and federal excise) stood at Rs. 90.334 billion. The customs duty-related irregularities amounted to Rs. 28.186 billion. The irregularities detected in the expenditures of the FBR totaled Rs. 3.167 billion.