Prime Minister Shehbaz Sharif has directed a sweeping three-year independent audit of customs-bonded warehouses across Pakistan, a move aimed at rooting out irregularities in a sector that handles 16.5% of the country's total imports. The directive came during a high-level meeting on Federal Board of Revenue (FBR) matters, where the PM stressed there is "no room for any irregularities" in these facilities, according to an official statement. Main Developments Sharif ordered that an independent third-party audit be conducted over three years, covering all customs-bonded warehouses nationwide. He also instructed that strict legal action be taken against any officials found involved in irregularities or illegal activities. Read also: Pakistani Gold Prices Surge Rs2,400 Per Tola as Global Rally Continues Physical stock verification of the warehouses will now be carried out across the country, as per the PM's directive. In parallel, authorities will review licensing, security protocols, valuation testing, and information technology systems that underpin warehouse operations. The meeting also received briefings on inland revenue enforcement. Notably, officials informed attendees that monitoring of petroleum product cargo in customs warehouses is already linked to the We-BOC system, the country's automated clearance platform. Background Bonded warehouses allow importers to store goods without paying customs duties until the items are cleared for domestic sale or re-export. This system is critical for trade facilitation but also creates vulnerabilities for duty evasion and smuggling. The government has previously pushed for reforms in customs enforcement, including third-party audits of WeBOC, the electronic system that processes trade declarations. Tuesday's directive extends that scrutiny to physical warehouse operations. Why It Matters With bonded trade representing a significant slice of imports, any leakage in these warehouses directly impacts national revenue. The audit aims to close loopholes that could be exploited for under-invoicing, misdeclaration, or outright theft of dutiable goods. The move signals a tougher stance on FBR accountability, potentially deterring corrupt practices. For businesses, however, tighter oversight could mean longer clearance times and stricter compliance burdens. What's Next Authorities will now initiate the three-year audit process, beginning with physical stock verification. The review of IT systems and valuation testing will proceed in tandem, with findings likely to inform future FBR policy. Officials named in the meeting, including Finance Minister Muhammad Aurangzeb and State Bank Governor Jameel Ahmad, will be tasked with implementing the PM's directives. No timeline for the audit's first phase has been announced.