Bankrupt Pakistan finds it lost Rs 2.2 trillion in ‘fake’ and ‘flying’ invoices in two years

An already cash-strapped Pakistan lost more than Rs 2.2 trillion (Pakistani rupees) in tax evasion in the past two fiscal years through ‘fake’ and ‘flying’ invoices.

Federal Board of Revenue (FBR) Member Hamid Atique Sarwar told the Senate Standing Committee on Finance and Revenue that over Rs 873 billion ‘fake’ and ‘flying’ invoices were found last year, which was an addition to the Rs 1.37 trillion that was already lost in the previous year.

Sarwar said that no punitive measures have been taken to address the tax evasions, and that such a massive loss of revenue cannot be allowed in the country.

He explained that the law, in effect since 1996, allowed for arrests if an assistant commissioner had reason to believe tax evasion was occurring, records were being tampered with, or suspects were attempting to flee the country. However, the latest Finance Bill introduces several safeguards to prevent the harassment of businessmen and taxpayers.

The committee conducted a thorough discussion on various anomalies in the Budget 2025–26, including briefings from members of the chambers of commerce, with particular concern over clauses that grant the FBR powers of arrest based solely on suspicion.

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Minister of State for Finance and Revenue Bilal Azhar Kiyani stated that the prime minister had formed a committee to address the concerns raised by the chambers.