ISLAMABAD/KARACHI, October, 2025 — The Federal Tax Ombudsman (FTO) has initiated a suo motu investigation into a massive customs fraud at Jinnah International Airport, Karachi, where high-value electronic goods were illegally removed without filing Goods Declarations (GDs) or paying applicable duties and taxes.
The scam, which has exposed serious lapses in airport cargo management and Customs oversight, involved employees of a foreign-based ground-handling company colluding with importers to clear shipments using fake gate passes and forged documents. The company, which operates terminals in Karachi, Lahore, and Islamabad, allegedly concealed airway bills through its internal iCargo system to bypass Customs controls.
Acting swiftly on credible intelligence, the Federal Board of Revenue (FBR) intercepted one consignment valued at Rs 103 million before it could be smuggled out. Further investigation revealed a total of five consignments, all originating from a Dubai-based company, had been fraudulently removed, with the total tax and duty evasion estimated at Rs 384 million.
What elevates the seriousness of the case is the FTO’s intervention. Recognizing the systemic failures, the FTO directed the FBR to thoroughly investigate the possible involvement of Customs officials in enabling the fraud. The FTO’s move underscores its critical oversight role in exposing institutional negligence and safeguarding public revenue.
The Collectorate of Customs Airport Karachi has already registered FIRs, arrested several employees of the handling company, and is pursuing further arrests. However, investigators have reported non-cooperation from the company’s senior management, including refusal to share CCTV footage and key documentation fueling suspicions of deeper complicity.
The FTO’s active involvement signals a tougher stance on institutional accountability, especially in cases where internal collusion threatens national revenue. The Chairman FBR and Member Customs have vowed zero tolerance for any official or custodian found negligent or complicit.
This case highlights the increasing role of the Federal Tax Ombudsman in not just redressing taxpayer grievances but also in exposing high-impact fraud and pushing for systemic reform in Pakistan’s tax and customs apparatus.
