ISLAMABAD: The Federal Board of Revenue (FBR) has sought a Technical Supplementary Grant (TSG) of Rs 3.291 billion to combat smuggling at the Indus Crossings across the country and along the River Hub. This move comes after the World Bank declined to provide funds for this purpose.
Sources close to the Chairman of the FBR informed Newzshewz that the FBR’s transformation plan was approved by the Prime Minister during a meeting on September 19, 2024. Following this, FBR submitted a summary to the Economic Coordination Committee (ECC) for anti-smuggling measures, which was approved by the ECC on November 12, 2024, and later by the Federal Cabinet on November 28, 2024.
Following were the two key interventions of the Plan to enable Customs in effectively combating smuggling ;(i) establishment of Digital Enforcement Stations (DES) at Indus Crossings across the country and on river Hub, under a dedicated Indus Customs Collectorate; and (ii) strengthening of strategically located Customs Check Points in Balochistan.
In the summary, the expenditure for the two interventions was proposed to be met out of existing development schemes of Revenue Division vis-à-vis PSDP No 980 ITTMS (Integrated Transit Trade Management System) and PSDP No 981 (Pakistan Raises Revenue). These projects were to be used (through revision) to fund the establishment of Digital Enforcement Stations (including their equipment) and ten strategically customs check points in Balochistan.
However, in a recent meeting, World Bank Country Office has conveyed its inability to fund two components of the project vis-à-vis land acquisition and arms and ammunition. The funding requirement is estimated at Rs 3,.291 billion for the component of land acquisition .
In addition, in order to smoothly execute the initiative, it is imperative that NESPAK may be engaged as Design Consultant and to ensure the timelines set by the PM are met, funding for engaging NESPAK estimated at Rs 140 million may be made available through the technical supplementary grant during current financial year 2024-25. Finance Division has agreed to the proposal.
Keeping in view the approved plan , FBR has requested ECC of the Cabinet to approve Rs 2.791 billion during financial year 2024-25 and Rs 1,200 billion in financial year 2025-26 as Technical Supplementary Grant (total Rs 3.991 billion) as per break-up for the following: (i) Rs. 3.291 billion for land acquisition component of DES and check posts ;(ii) Rs. 560 million for procurement of arms and ammunition component ; and (iii) Rs 140 million for engaging NESPAK as design consultant.
The Economic Coordination Committee (ECC) of the Cabinet which will consider the proposal of FBR and approve it as Finance Division, which always creates hurdles in grants related matters, has already gave its nod.
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