The Federal Board of Revenue (FBR) has acknowledged discrepancies between Pakistan and China’s reported trade figures, saying the gap recorded in 2023 declined from 32 percent to 0.54 percent after reconciliation.

The tax authority said differences in the two countries’ figures submitted to the International Trade Centre can result from variations in how trade data is collected, compiled and reported. It added that such differences do not, by themselves, prove that imports were under-invoiced.

The FBR has approached Chinese authorities to expand the electronic data exchange system to include transaction-level details, which are currently unavailable. It has also introduced measures to improve trade data reporting, which took effect in July 2026.

Pakistan Customs is separately working to address concerns about import fraud and under-invoicing through measures designed to ensure transparent and consistent customs valuations, the FBR said.

The Directorate General of Customs Valuation has issued and updated valuation rulings for several products, including yarn and fabrics. These decisions were made in consultation with industry associations and other stakeholders, taking into account international price publications and global market trends.

The valuation authority has also revised customs values for polyester filament yarn and is reviewing rates for other textile products, including mink yarn, cotton yarn, core-spun blended yarn and billiard cloth.

The FBR said these reviews aim to establish realistic and uniform customs values, address concerns raised by industry and protect local manufacturers.

The measures cover several sectors, including textiles, steel, chemicals, tyres, plastics and automotive components, where accurate customs valuations are important for ensuring fair competition and preventing import-related irregularities.