By Abdul Ghani

The Federal Board of Revenue (FBR) has proposed an allocation of more than Rs10 billion in the Public Sector Development Programme (PSDP) 2026-27 to accelerate the construction of a customs complex and build digital enforcement stations, according to a document available with Wealth Pakistan.

The customs complex in Sost, located on the Pakistan-China border in Gilgit-Baltistan, involves sepoy barracks, an e-facilitation centre, a transit accommodation site and a customs forensic laboratory.

The digital customs enforcement stations would be constructed along the Indus and Hub Rivers and other strategic locations in Balochistan.

The total approved cost of the multi-component project stands at Rs17.48 billion. By the end of June 2025, total recorded expenditures amounted to Rs681.244 million. For the financial year 2025-26, an allocation of Rs539.629 million was made, entirely under local funding.

The document further reveals that the Planning Commission had authorized over Rs5.93 billion during FY2025-26, with actual expenditure recorded at Rs184.617 million as of January 15, 2026. The throw-forward liability stands at over Rs10.85 billion, the same amount now proposed for allocation in PSDP 2026-27 to ensure timely completion of the projects.

The project is a key pillar of FBR’s broader transformation plan aimed at strengthening enforcement capacity, curbing smuggling, and enhancing revenue collection. The initiative has been described as being of “immense national significance,” particularly in combating illicit trade and securing transit corridors in sensitive border regions.

The document indicates that parts of the project will be completed during the current financial year, while remaining components will be carried forward to the next fiscal cycle. The establishment of digital enforcement stations is expected to modernize monitoring mechanisms along major trade routes, especially across riverine and border areas where smuggling risks remain high.

It has also been noted that an amount of Rs5.4 billion, approved by the federal cabinet earlier, has not yet been released by the Finance Division, contributing to slower-than-expected progress. The timely release of funds will be critical to meeting the Apex Committee timelines and ensuring full operationalization of enforcement infrastructure.

The proposed allocation, if approved, would mark a major fiscal commitment toward strengthening Pakistan’s customs regime and reinforcing anti-smuggling operations through technology-driven oversight systems.

Credit: INP-WealthPk