Latest news with #Anti-Benami
Business Recorder
5 days ago
- Automotive
- Business Recorder
Used cars' import: Auto industry rallies against govt plan
ISLAMABAD: Pakistan's auto industry, particularly Japanese assemblers, is reportedly making a last-ditch effort to block the government's plan to allow the commercial import of five-year-old used cars, expected to be implemented from October 1, 2025, well-informed sources told Business Recorder. Representatives from Original Equipment Manufacturers (OEMs) and auto parts vendors recently held detailed discussions regarding the proposed used car import policy and its potential impact on domestic auto industry. The new import tariff policy is expected to adversely affect existing OEMs — especially Japanese companies — while Chinese firms, primarily focused on electric vehicles (EVs), are seen as less vulnerable to the tariff rationalization due to their EV-centric product lines. Old car importers: Anti-Benami zone of FBR initiates big crackdown According to industry sources, stakeholders informed the government that the total new car market in Pakistan is approximately 200,000 units annually. Under the current regime, around 40,000 used vehicles are imported each year. Nadeem Malik, a leading manufacturer, warned that further relaxing import conditions for used cars would severely undermine the domestic industry's access to its own market. 'The volume is already so low that new investment and localization are struggling to survive,' Malik stated. Shehryar Qadir, Senior Vice President of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), informed the Minister that 17 WP29 regulations have been adopted by the local auto industry. However, he pointed out that these standards apply only to domestically manufactured vehicles, with no quality checks imposed on imported used cars. 'This creates an uneven playing field, putting local industry—which already faces significant challenges—at a serious disadvantage,' Qadir said. He further noted that pressure is mounting to adopt additional WP29 regulations, which would further increase operational costs for local manufacturers. 'With the imposition of a carbon tax and now enhanced quality standards, policy direction seems to be artificially inflating the price of Internal Combustion Engine (ICE) vehicles to make EVs appear economically viable,' sources quoted industry stakeholders as saying adding that 'Otherwise, EVs are currently so expensive that they don't make business sense in a country like Pakistan.' Akhlaq, General Manager of a large OEM, highlighted Pakistan's limited purchasing power, with a vast majority of consumers at the lower-income level and only a small segment able to afford high-end vehicles. 'If prices are pushed up artificially, most of the population will be priced out of the market for new, locally manufactured cars,' he warned and added that 'This policy shift risks turning Pakistan into a trading economy and a dumping ground for used vehicles from around the world.' Following extensive discussions, the Minister announced the formation of a joint committee, including members from the Pakistan Automotive Manufacturers Association (PAMA) and PAAPAM. The committee will work on formulating a balanced policy regarding the commercial import of used cars. According to an official statement, a government strategy is being developed to support the growth and export of the auto sector. 'After tractors and motorcycles, Pakistan will now export cars as well. The auto industry will be a key part of the new industrial policy,' the Minister stated. Jam Kamal added that healthy competition in the Pakistani auto market is increasing and that tariffs will be gradually reduced over the next five years. He emphasized that all imported used cars must meet environmental and quality standards. 'The tariff reduction agreement with the United States has opened new opportunities for auto exports,' he continued. Copyright Business Recorder, 2025
Business Recorder
11-08-2025
- Business
- Business Recorder
Probe into benami transactions, money laundering: FBR transfers spark controversy
KARACHI: Two senior Federal Board of Revenue (FBR) officials have been transferred from their posts in Karachi to Islamabad, sparking controversy over the future of ongoing investigations into alleged benami transactions and money laundering worth trillions of rupees in the vehicle imports. Although FBR officials termed the transfers/postings as routine administrative measures, this time, the transfers have raised questions about potential interference in high-stakes investigations, following the public allegation by one of the transferred officials that his posting was retaliation for taking action against powerful lobbies involved in vehicle imports. Abdul Hameed Abro, who was serving as Commissioner (Ops) Inland Revenue, Benami Zone-III in Karachi, was transferred after launching what he described as a comprehensive crackdown against benami transactions in vehicle imports. Old car importers: Anti-Benami zone of FBR initiates big crackdown In a social media post on his verified account, Hameed suggested his transfer was connected to his enforcement actions. 'When I took action against benami transactions and the misuse of baggage and gift schemes in the vehicle imports, it caused trouble to the powerful lobbies,' Hameed wrote. 'My only 'fault' was that I enforced the law and protected the national treasury. As a result, I was transferred from Karachi to Islamabad.' The commissioner defended his actions, saying that they were in the national interest and aimed at preventing billions in losses to the treasury through fake documentation and scheme misuse. 'I can be removed, but I cannot be defeated! I simply did my duty — and wherever I may be, this journey will continue,' he added. Under Hameed's leadership, the Benami Zone-III had launched an extensive investigation targeting the systematic abuse of the Vehicle Baggage and Gifts Scheme (VB&GS). The scheme, originally designed for legitimate personal imports, has allegedly been exploited by commercial importers working through clearing agents with suspected support from customs officials. The investigation covers vehicle clearances conducted between February 2018 and May 2025, with authorities demanding detailed explanations for thousands of vehicle imports processed under the personal baggage scheme. The Benami Zone has requested comprehensive documentation from suspected parties, including complete import records, customs declarations, details of end users and true owners with full identification, information on all transaction parties, copies of agreements and contracts, and bank statements covering the entire seven-year investigation period. In a parallel development, Sheeraz Ahmad, who was serving as Director of Post Clearance Audit (PCA), South, was also transferred to Islamabad. Ahmad had been actively involved in auditing Pakistan's most touted corruption-free clearance system - 'Faceless Customs Assessment (FCA)'. The PCA audit report under Sheeraz's supervision revealed significant irregularities, including widespread under-invoicing of high-value luxury vehicles. The audit found that importers consistently failed to provide documentation showing legitimate foreign currency payments, strongly suggesting the use of illegal hawala and hundi money transfer networks. 'Importers consistently failed to provide proof of payments substantiating that purchases of imported vehicles were made through legitimate remittances originating from foreign countries,' the audit report said. The investigation has uncovered what appears to be an organized scheme where importers systematically used illegal money transfer channels to pay actual purchase prices abroad while declaring minimal amounts to Pakistan customs to avoid duties and taxes. The PCA audit also detected approximately Rs 38 billion in revenue leakage following the implementation of the FCA system, attributed to several technical flaws identified in the audit report. While the FBR official sources termed the transfers are routine administrative measures, the timing and circumstances have raised concerns about the continuity of ongoing investigations. Both transferred officials are expected to continue their duties in their new postings in Islamabad, though questions remain about who will lead the ongoing investigations and whether the enforcement momentum will be maintained or, like other investigations, it will be shelved. Copyright Business Recorder, 2025
