A Senate subcommittee has raised serious concerns regarding the administration and potential misuse of tax exemptions available under the FATA/PATA regime. According to information presented before the committee, imports worth approximately Rs. 1,120.66 billion were recorded between 2018 and June 2026, whereas consumption certificates covered imports worth approximately Rs. 389.86 billion. This resulted in an apparent unreconciled difference of Rs. 730.79 billion, prompting demands for detailed verification of the underlying import and consumption records.
The reported discrepancies extend across several major sectors, including steel (Rs. 148.25 billion), textiles and fabrics (Rs. 146.95 billion), food (Rs. 100.88 billion), and ghee and oil (Rs. 76.48 billion). The Federal Investigation Agency informed the committee that 512 notices had been issued to companies in connection with the investigation, while only 19 companies had participated with partial records. The committee also sought explanations regarding consumption certificates, related payments, and supporting verification documents, particularly transactions involving substantial amounts.
The distinction between an unreconciled amount and an established tax liability remains critically important. The reported difference does not automatically represent tax evasion or recoverable government revenue. Transaction-wise reconciliation, verification of actual consumption, examination of applicable exemption conditions, and determination of any resulting tax liability are necessary before conclusions can be drawn. The committee has scheduled an in-camera meeting for November 16, 2026, to examine the relevant records and supporting documentation.