In a major restructuring effort to strengthen Pakistan’s customs oversight and improve revenue collection, the Federal Board of Revenue (FBR) has announced a complete overhaul of its customs audit system. Issued under S.R.O.1655(I)/2025, the move establishes a new framework for the Directorate General of Post Clearance Audit and Internal Audit (PCA-IA), replacing earlier directives from 2019 and 2009. The reform marks a significant shift toward a more transparent, efficient, and globally aligned customs audit regime.
At the heart of this reform is the adoption of a National Customs Audit Strategy (NCAS), designed to standardize procedures and incorporate risk-based auditing across Pakistan’s customs network. Drawing from international best practices and guidelines of the World Customs Organization (WCO), the NCAS emphasizes advanced data analytics and risk profiling to ensure targeted audit interventions while reducing redundancy and inefficiencies.
One of the defining elements of the new framework is centralized audit planning. Annual audit programs will now be prepared using key risk indicators and data-driven assessments to avoid duplication and ensure meaningful scrutiny. Alongside this, quality assurance protocols have been embedded into the system, mandating standardized processes for audit selection, reviews, appeals, and record-keeping. The system also incorporates performance monitoring through key performance indicators (KPIs), with findings, risks, and corrective actions to be reported quarterly and annually.
The establishment of a Data Analytics Center (DAC) within the PCA-IA represents another transformative step. The DAC will serve as the nerve center of customs oversight, pooling data from internal platforms such as WeBOC and Pakistan Single Window (PSW), alongside external datasets from the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan, and international trade sources. Using artificial intelligence and statistical models, the DAC will detect anomalies such as misdeclaration, under- or over-valuation, and fraudulent claims under trade agreements. Sector-wide analyses, machine learning-driven risk assessments, and actionable intelligence for auditors are central to its role.
To ensure streamlined execution, an Audit Management Cell (AMC) has been introduced to oversee the implementation of audit plans, track performance against KPIs, and consolidate reports across directorates. The AMC will maintain a feedback loop with the DAC, enabling continuous refinement of audit strategies and risk models.
The overhaul also entails a jurisdictional realignment of regional directorates under PCA-IA. Eight directorates, spread across Karachi, Quetta, Lahore, and Islamabad, have been tasked with carrying out post-clearance audits, internal reviews of customs operations, and inspections of warehouses, terminal operators, and customs agents. The Director General will retain authority over concurrent audits and legacy cases to maintain oversight consistency across the system.
The notification further strengthens the legal powers of PCA-IA officers under the Customs Act, 1969. From Directors down to Inspectors, officers are now explicitly empowered to issue notices, conduct investigations, and enforce compliance under designated sections of the law. This legal clarity is expected to bolster enforcement capability and reduce loopholes.
The reorganization became effective on August 30, 2025, and is being hailed as a pivotal development in Pakistan’s customs governance. By embedding advanced technology, strengthening institutional frameworks, and aligning with global standards, the FBR aims to not only safeguard revenues but also enhance transparency and facilitate trade.
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