Peshawar High Court halts FBR action to Freeze PESCO Bank accounts
PESHAWAR: The Peshawar High Court (PHC) has issued a significant interim order, restraining the Federal Board of Revenue (FBR) from taking any further coercive action to freeze the bank accounts of Peshawar Electric Supply Company (PESCO).
According to the written order, the court directed PESCO to submit a post-dated cheque for Rs. 5.15 billion within seven days to the Additional Registrar Judicial.
The court further clarified that until the final decision of the case, the FBR shall not initiate any punitive or recovery proceedings against PESCO.
The order came in response to a petition challenging an FBR notice. As per court documents, the FBR had issued a notice to PESCO on May 19, 2026, demanding payment of over Rs. 5.15 billion on account of sales tax.
During the hearing, PESCO’s counsel argued that the company had already paid Rs. 1.6 billion under the 2013 Amnesty Scheme. The lawyer contended that after those payments, the FBR’s fresh tax demand lacked legal justification.
In its interim ruling, the PHC stopped FBR’s recovery action and issued notices to both parties. The court directed them to submit detailed replies within two weeks.
The next hearing will be held after the submission of responses from both sides.
The interim relief provides PESCO temporary protection from account freezes while the main tax dispute is adjudicated.
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