Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has rejected an internal audit report alleging that Pakistan’s faceless customs system caused losses of Rs100 billion, calling the findings inaccurate and part of a campaign to discredit reforms.
Speaking to reporters, Langrial said some officers and stakeholders were attempting to undermine the system, which was designed to curb corruption and bribery. He acknowledged differences among FBR cadres but insisted the faceless system would not be rolled back.
The chairman noted the system had unsettled vested interests, saying “many people are upset” and “some are working on a hidden agenda.” He emphasized that the culture of political influence in appointments had ended, with no officer posted in the past year on ministerial recommendation.
Langrial explained that under the old manual system, misdeclarations were common, while the faceless setup limited collusion among officers. Still, he admitted corruption had not been completely eliminated. An inquiry has been launched into the report’s leak, with disciplinary action promised against those providing false information.
Customs officials also dismissed claims of revenue losses, saying no vehicle had been cleared without full duties. They cited a Land Cruiser on which Rs47.2 million in taxes were collected as evidence. Officials said revenue collections had improved under the new system.
The faceless system, introduced on the World Bank’s recommendation, was aimed at improving trade facilitation rather than revenue generation, officials noted. They said the audit, prepared in July, was meant to highlight weaknesses for correction but was leaked prematurely.
Langrial reaffirmed that reforms in the FBR would continue, with a new cadre for customs assessment under consideration. He added that demurrage costs had fallen and revenues were expected to rise. Authorities stressed that the manual clearance system would not be revived, and measures were underway to strengthen safeguards against misuse and hacking.
