In a bid to enhance operational efficiencies, eliminate duplication of efforts, and safeguard national trade security and economic interests, a Committee of PCS officers was established on August 23, 2024. The committee’s recommendations led to the formation of Working Groups tasked with translating these recommendations into actionable steps, including the reorganization of existing structures where necessary. These reorganization proposals, along with associated costs, were presented to the Prime Minister of Pakistan on September 19, 2024, and received approval in principle.
The approved reorganization proposals identified the enforcement functions carried out by the Directorate General of I&I (Customs) as duplicative, leading to non-optimal utilization of human resources and deviating from the principle of unity of command. This was particularly evident given the functional specializations developed within Customs Operations over the years and the creation of the office of the Director General (Enforcement) as part of the current reorganization exercise.
In a meeting held on October 11, presided over by the Chairman of the Federal Board of Revenue (FBR), the Board-in-Council decided that the Directorate General would cease all enforcement functions, including anti-smuggling operations and blocking/de-blocking through WeBOC, except for ‘sting operations’ which would be conducted sparingly and with the approval of the Member Customs (Operations).
The Board is in the process of issuing a Statutory Regulatory Order (SRO) to reflect the reorganized status of the Directorate General in terms of powers exercisable under the Customs Act 1969. Additionally, a new Charter of Functions and a Customs General Order (CGO) delineating the jurisdictions of the Directorates of I&I will be issued, along with rules defining “sting operations” and their execution. The warehouses of the Directorate General, along with some human resources, will be transferred to the new office of the Director General (Enforcement). The Directorates of Rawalpindi, Multan, Hyderabad, and Gawadar will be closed under the new Charter of Functions.
To ensure a seamless transition, the Directorate General has been instructed to complete several tasks within specified timelines. These include stocktaking of all existing warehouses by November 12, 2024, reporting the status of office buildings and assets by November 7, 2024, listing all current legal cases and active investigations by November 12, 2024, and providing a complete inventory of personnel files and the current sanctioned/working strength by October 31, 2024.
The reorganization plan, formulated by a sensitive agency, will see the Directorate General of I&I operate similarly to sensitive agencies. Four Directorates of I&I, including those in Hyderabad, Khuzdar, Rawalpindi, and Multan, will be eliminated, while the remaining Directorates in Karachi, Lahore, Peshawar, and Quetta will continue to operate. The performance and revenue collection of I&I and Enforcement will be compared to assess their effectiveness separately.