MULTAN: Federal Board of Revenue recent Customs reforms is now being seen as a major policy misstep which aimed at centralizing anti-smuggling operations by side-lining the Directorate of Customs Intelligence and Investigation.
Recent reforms in Customs have backfired, resulting in a spike in smuggling and weakening enforcement capabilities across critical regions including South Punjab.
As part of the much-trumpeted restructuring plan, the FBR had significantly curtailed the operational powers of the Directorate of Customs Intelligence, shut down its Multan office, and transferred its staff to the Collectorate of Customs (Enforcement). The rationale, officials said at the time, was to place all anti-smuggling efforts under a single enforcement umbrella for improved coordination.
Instead, the move has delivered the opposite: enforcement has faltered, field presence has been diluted, and smuggling particularly of petroleum products, vehicles, and electronic goods has surged to its worrying levels.
Critics within the department now say the reforms were implemented in haste, without adequate consultation or understanding of on-ground realities. “Rather than empowering enforcement, these reforms have disarmed the very units that were trained and tasked with tracking and intercepting high-level smuggling networks,” said a senior official on condition of anonymity.
Field officers and insiders further revealed that by stripping Customs Intelligence of its anti-smuggling authority and outsourcing this responsibility to police and other civil law enforcement agencies, the government inadvertently created bureaucratic confusion and operational delays. Smuggling cannot be countered through paperwork or distant command structures it requires eyes and boots on the ground, which the directorate was best positioned to provide, a former intelligence official explained.
The Multan Directorate, in particular, had played a pivotal role in curbing cross-border smuggling networks and monitoring key transit routes. Its abrupt closure not only disrupted active investigations but also demoralized staff that were re-posted without clear roles.
Now, in a quiet but telling reversal, FBR’s Customs Wing has decided to fully restore the Directorate of Customs Intelligence and Investigation in Multan following the upcoming 2025–26 federal budget. Sources confirm that the home department has begun internal preparations to reinstate the directorate’s structure, reassign powers, and resume field operations. A formal notification is expected soon.
This policy U-turn raises larger questions about the FBR’s strategic planning and decision-making processes. Was there any real assessment of impact before gutting a critical enforcement arm? Were performance audits or field reports even considered?
At a time when Pakistan’s economy is battling serious fiscal pressure, the inability to prevent revenue leakage through smuggling is not just a governance issue. It’s a national economic threat. The failure of recent customs reforms underscores the need for data-driven, consultative policymaking that strengthens institutions instead of dismantling them under experimental blueprints.
As the FBR prepares to revive its intelligence apparatus, stakeholders are calling for a comprehensive review of all recent structural changes within customs, urging transparency, accountability, and a re-focus on professional field expertise to meet revenue targets and curb illegal trade.
