Karachi: The Federal Board of Revenue has announced a sweeping restructuring of the country’s customs post-clearance and internal audit framework through SRO 1655(I)/2025 issued on August 30, with the objective of plugging revenue leakages, improving compliance, and aligning Pakistan’s audit practices with international standards including those of the World Customs Organization. At the core of this initiative is the National Customs Audit Strategy which consolidates post-clearance audit and internal audit into a single compliance-driven structure emphasizing risk assessment, data analytics, and standardized operating procedures to ensure that trade facilitation for compliant businesses goes hand in hand with strict enforcement against irregularities. Under the new arrangement an annual audit plan will be drawn up based on comprehensive data analysis, prioritizing high-risk transactions and entities while eliminating duplication of audit efforts across formations to ensure efficient utilization of resources. Standardized procedures will cover every stage of the audit process from case selection and observation to review, appeal, and record-keeping thereby reducing subjectivity and bringing transparency and consistency in outcomes. Customs auditors will undergo specialized training in modern techniques, data interpretation, and digital applications enabling them to identify misdeclaration, under-invoicing, false origin claims, and other practices that cause significant revenue loss to the national exchequer. The results of audit exercises will be measured against key performance indicators with quarterly and annual reports forming the basis of continuous improvement in risk models and compliance strategies. To support the strategy a dedicated Data Analytics Center will act as the central hub drawing information from platforms such as WeBOC, Pakistan Single Window, SECP, the State Bank of Pakistan, and global trade databases to develop predictive models for detecting high-risk consignments and sectors, while an Audit Management Cell will supervise execution of the audit plan, maintain computerized records, monitor performance metrics, and provide technical support ensuring uniformity across formations. The scope of internal audit has also been expanded beyond customs operations to include accounts, expenditure, assets, and warehouse management, reinforcing internal controls and financial integrity. Oversight of the entire structure will rest with the Directorate General of Post-Clearance and Internal Audit headquartered in Karachi with seven regional directorates in Karachi South, Karachi East, Karachi Exports, Lahore Central, Quetta Balochistan, Islamabad North, and Karachi Headquarters tasked with implementing the policies in a uniform manner nationwide. The FBR has expressed confidence that this reorganization will significantly strengthen Pakistan’s customs administration by combining technology-driven risk assessment with strict procedural uniformity, creating an audit regime capable of detecting leakages with precision, fostering voluntary compliance among traders, enhancing government revenues, and building trust in the regulatory framework at a time when Pakistan’s trade environment is becoming increasingly complex and competitive.
