News Detail
Event Title: Senator Rana Mahmood Ul Hassan, Chairman Senate Standing Committee on Cabinet Secretariat presiding over a meeting of the committee at Pakistan Institute of Parliamentary Services (PIPS), Islamabad
Event Date: 2026-08-21
Senate Standing Committee on Cabinet Secretariat, chaired by Senator Rana Mahmood-ul-Hassan, held a detailed meeting to review customs enforcement and security challenges in Balochistan, the security of LPG tankers, LPG supply and pricing, the issue of substandard cylinders, the fire incident at the Quetta Customs warehouse, border trade matters, investigations by the Federal Investigation Agency, the taxation and registration of mobile phones, and the installation of facial recognition devices at franchises along with biometric verification through PakID.
The committee was briefed on serious security challenges faced by customs authorities in Balochistan. Officials informed the committee that more than 30 attacks had been carried out on LPG bowsers in Nushki. They stated that the situation has been brought under considerable control through enhanced security measures. Customs officials noted that an LPG bowser is valued between Rs 20 million and Rs 30 million, underscoring the significant financial losses and security risks associated with such attacks.
Additional Inspector General of Police Balochistan informed the committee that police, Frontier Corps and other law-enforcement agencies are actively working to protect LPG transportation routes. He acknowledged that the mountainous terrain poses serious operational challenges, but assured that all possible efforts are being made to improve security and prevent further incidents.
The committee was also briefed on the country’s LPG supply gap. An OGRA member stated that Pakistan’s daily LPG consumption stands at 6,000 metric tonnes, while domestic production ranges between 2,000 and 2,500 metric tonnes per day. Senator Abdul Qadir inquired about the distribution of LPG across the country. The OGRA member replied that the government has allocated a 10 percent quota for the northern areas. Senator Abdul Qadir proposed that LPG should instead be divided equally between the northern and southern regions, with a 50 percent share for each.
The OGRA member further informed the committee that piped gas reaches only 28 percent of the country’s urban population, making LPG an important alternative source of energy for a large section of consumers. A representative of the LPG Association told the committee that sufficient gas is not available for the northern areas and that importers face difficulties due to policy-related issues. He stated that the government’s price calculation is based on local prices, while a difference of approximately $150 exists between local and imported LPG prices. The representative noted that LPG is currently being sold in the market at Rs 400 to Rs 500 per kilogram, whereas it should ideally be available at around Rs 350 per kilogram. He affirmed that the LPG industry is ready to support the government, provided the sector is strengthened through appropriate policy measures.
The issue of substandard LPG cylinders also came under discussion. Committee Chairman Senator Rana Mahmood-ul-Hassan expressed serious concern over the sale of substandard cylinders in the market and the frequent incidents of cylinder explosions. OGRA officials informed the committee that the existing law provides for a fine of Rs 50,000 and six months’ imprisonment for the sale of substandard cylinders. However, after arrests, accused persons often obtain bail by taking advantage of legal provisions. Officials stated that amendments to the law are being proposed to increase the punishment to 14 years’ imprisonment along with heavy fines. The proposed amendment bill has been sent to the Ministry of Interior.
The committee examined the fire incident at the Quetta Customs warehouse. Customs officials stated that the exact cause of the fire had not been determined, while acknowledging that certain materials stored at the warehouse were highly inflammable. Senator Aimal Wali Khan questioned why inflammable materials, including LPG and petrol, had been stored at the facility. Customs officials described the incident as a lapse and stated that action is being taken against the persons concerned. Additional IG Balochistan informed the committee that petrol had been poured and the fire had been deliberately started. Senator Aimal Wali Khan pointed out a significant discrepancy between the reports prepared by the police and customs authorities, noting that one report indicated the fire had started spontaneously while another stated that it had been deliberately set. The Chairman directed that both reports be placed before the committee along with a detailed briefing on the matter.
The committee members also pointed out two inspectors posted at the Gaddani Collectorate and inquired why action had not been taken against them despite instructions from the Chairman FBR. The Customs side stated that the matter would be examined more comprehensively and requested the committee to share any available evidence so that appropriate action could be taken.
Senator Aimal Wali Khan also questioned the closure of the border with Khyber Pakhtunkhwa. He observed that if the border with Khyber Pakhtunkhwa was to remain closed, similar measures should be considered for Balochistan, particularly given the greater threat of terrorism in the province. He stressed that Pakistan’s neighbours would remain its neighbours and that trade with neighbouring countries, including India, needed to be restored.
FIA briefed the committee on the arrest of former FESCO CEOs and informed that the case, initially taken up by the FIA, had subsequently been transferred to NAB. Senator Aimal Wali Khan discussed the matter of the arrest of a senior Customs officer by the FIA and pointed out the harassment being faced by the Collector’s family. The FIA explained the current status of its investigation. Senator Aimal Wali Khan stated that the family of the Collector should be invited to the next committee meeting so that they can explain their position. A question was also raised regarding the simultaneous trial of cases in Customs courts and FIA courts. Both Customs and FIA denied that parallel proceedings were being conducted. Committee members indicated that they would place specific instances of such practice before the committee in the upcoming meeting.
The committee subsequently received a detailed briefing from the Pakistan Telecommunication Authority, Federal Board of Revenue and Customs authorities on mobile phone registration, taxation and customs duties. A PTA member informed the committee that a mobile phone is registered as soon as it connects to Pakistan’s network. He clarified that PTA does not impose taxes on mobile phones and that the FBR determines the applicable tax. FBR officials stated that the previous budget provided for a 20 percent reduction in customs duty every year and that customs duty on mobile phones would continue to decline by 20 percent annually until 2030.
Officials explained that different valuation mechanisms exist for old and new mobile phones, while Customs authorities calculate the applicable taxes under Article 25 of the Customs Act. A fixed duty is prescribed for every phone and cannot be changed arbitrarily. The PTA member noted that locally assembled mobile phones are being produced in Pakistan; however, batteries and casings are not yet manufactured domestically. He stated that the Engineering Development Board is working on a new policy for the sector.
Committee Chairman Senator Rana Mahmood-ul-Hassan observed that the Global System for Mobile Communications Association (GSMA) had warned that the existing tax structure could impede the successful rollout of 5G services in Pakistan. He also questioned the taxation of new and old iPhones, noting that the same tax treatment appeared to be applied to both. The PTA member stated that the FBR uses the International Mobile Equipment Identity (IMEI) number to identify mobile phones and that the existing system does not differentiate between new and old phones solely on the basis of IMEI when determining tax. He added, however, that Customs checks consignments of mobile phones arriving in containers and can determine during inspection whether the phones are new or used, and that the tax treatment applicable to new and old phones in such consignments differs accordingly. The PTA member further informed the committee that millions of mobile phones carrying fake IMEI numbers had been blocked.
The committee also discussed the installation of facial recognition devices at franchises and the introduction of biometric verification through PakID by NADRA. It was informed that NADRA is currently not supporting the PTA in this regard, despite the fact that all telecom operators have already made significant investments to operationalise the verification system through the PakID application. The committee directed that the Chairman of NADRA be invited to attend the next meeting so that the matter can be taken up comprehensively.
The committee expressed concern over gaps in enforcement, consumer protection, LPG supply and pricing, customs security in Balochistan, border trade arrangements, coordination among investigative agencies, inter-agency coordination between PTA and NADRA on biometric verification, and the existing mobile phone taxation mechanism. The Chairman stressed the need for effective implementation of laws, stronger institutional coordination, and corrective legislative measures to address issues affecting public safety, energy availability, cross-border trade, revenue collection and consumers.
The meeting was attended by officials from Customs, OGRA, Police, PTA, FBR and FIA, along with representatives of the LPG sector.