The erstwhile Federally Administered Tribal Areas (FATA) have gradually started becoming a tax haven within Pakistan as businesses have either established shell or small setups to evade taxes due to a five-year tax holiday.

The incentives that had been given for bringing tribal areas to the mainstream and triggering development process are being abused by businesses that have presence in developed parts of the country, according to representations given to the Federal Board of Revenue (FBR).

These businesses produce and sell goods in the developed parts and show production and consumption in tribal areas aimed at evading taxes.

https://tribune.com.pk/story/2276497/former-fata-becomes-tax-haven