FBR Seeks Transaction-Level Data Exchange With China To Verify Bilateral Trade
Listen3 min
Read aloud by your device’s built-in synthetic voice, not a recording. Needs a browser that can read aloud.
Pakistan Customs has clarified that discrepancies in reported trade figures between Pakistan and China should not, by themselves, be treated as conclusive evidence of under-invoicing, saying the differences require reconciliation and verification.
In a press release issued on October 13, the Press Information Department (PID) said the Federal Board of Revenue (FBR) and Pakistan Customs were addressing concerns over the valuation of Chinese imports and taking steps to improve the transparency of customs assessments.
Limitations of Mirror Trade Analysis
The government said mirror trade analysis — which compares China’s reported exports to Pakistan with Pakistan’s recorded imports from China — has inherent limitations because countries and institutions use different data collection, compilation and reporting practices.
As an example, the government said a reported trade discrepancy of 32% in 2023 fell to just 0.54% after reconciliation. It added that the FBR had introduced corrective measures to improve trade-data reporting from July 2026.
Valuation Rulings to Guard Local Industry
Pakistan Customs said the Directorate General of Customs Valuation was prioritising concerns raised by domestic manufacturing industries, including textiles, steel, chemicals, tyres, stationery, dyes, plastics, glass, light engineering and automotive components.
The Directorate General of Customs Valuation in Karachi has issued valuation rulings covering various yarns and fabrics under Section 25A of the Customs Act, 1969. These assessments draw on international price publications, global market trends and consultations with relevant industry associations and stakeholders.
The government also said the valuation ruling for polyester filament yarn had been revised in line with international market trends. Further reviews are under way for products including mink yarn, core-spun blended yarn, cotton yarn and billiard cloth.
Transaction-Level Electronic Data Protocol
To improve verification of bilateral trade, the FBR has also raised the issue with Chinese authorities of extending the electronic data-exchange mechanism to the transaction level, which is not currently available.
Pakistan Customs said it would continue working to protect domestic industry, ensure accurate customs valuation and facilitate legitimate imports through transparent, evidence-based procedures.
