Customs uncovers millions in fraud within Export Finance Scheme

KARACHI: A major financial fraud and money laundering operation has been uncovered by the Customs Department within the Export Finance Scheme (EFS), involving millions of rupees in tax evasion and illegal transactions, ARY News reported.

According to reports, the fraud was discovered through a post-customs clearance audit, which revealed that the company Fazal Rabi Enterprises had been involved in fraudulent activities, draining off huge amounts from the national treasury.

According to the Deputy Director of Customs, Shiraz Ahmed, the company had used fake addresses in Karachi and Hub, where it had never actually conducted business. Investigations revealed that the company’s registration profile contained a fake National Tax Number (NTN) with a fraudulent address.

Despite being registered with bogus information in Karachi, the company fraudulently obtained EFS facilities from the Gwadar Customs Collectorate.

Customs data further exposed that the fake company, operating under a false user profile, had never conducted exports, despite having secured permissions for the same.

The company managed to illegally import goods worth Rs208 million, evading taxes and duties in the process. As a result, Rs140 million in tax duties were stolen through fraudulent transactions.

Additionally, investigations found that the illegal funds, totalling Rs208 million, were transferred abroad, further complicating the case.

The Customs department has initiated strict actions against the fraud and is continuing its investigation into the matter.

Read More: Customs foils bid to smuggle gold, iPhones at Lahore airport

Back in November 2024, Customs apprehended an individual at Lahore airport attempting to smuggle gold and iPhones.

According to the details, a man named Asif Shahzad, arriving from Dubai on the private airline PA-417, was arrested for trying to smuggle over 1.628 kg of gold, six diamond sets, and five iPhones.

Customs officials indicated that the suspect concealed gold within his clothing.

Authorities have filed a case against him under the customs act, officials noted.

Earlier in September, the customs officials thwarted a money laundering attempt at Jinnah International Airport, Karachi and arrested a passenger.

As per the customs spokesperson, on the basis of suspicion, the staff stopped a passenger bound to board an international flight from Karachi airport to Doha.

During the deep inspection of the luggage, the customs officials recovered a total of $20,000 US in cash.

After confiscated the currency, the officials registered a First Information Report (FIR) against the Doha-bound passenger to investigate and identify the real culprits behind the money laundering attempt.