Govt launches Cargo Tracking System to curb smuggling

June 10, 2025 (MLN): The government has introduced a comprehensive "Cargo Tracking System" aimed at curbing smuggling and enhancing tax compliance, as per the Finance Bill presented during the budget FY26 speech.

The system, detailed in Section 83C of the Finance Bill, 2025, mandates electronic monitoring and tracking of goods through a digital document known as an "e-bilty."

This measure applies to the inland movement of all import, export, transit, and transshipment consignments across Pakistan.

The Federal Board of Revenue (FBR) will be authorized to charge fees for the maintenance and operation of the tracking system and may also implement technological means for real-time tracking and record-keeping.

The bill clearly stipulates that violations, such as failure to generate, carry, display, or validate an e-bilty, will result in penalties starting at Rs50,000 for the first offence and escalating to Rs500,000 for a second.

Repeat offences will incur a penalty of up to Rs1 million along with confiscation of goods and conveyance.

Certain exemptions have been granted, such as movements involving goods below prescribed value or distance thresholds, or goods specifically exempted from the e-bilty mechanism.