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Express Tribune
22-02-2025
- Business
- Express Tribune
PM takes notice of smuggling
Listen to article Prime Minister Shehbaz Sharif has taken notice of the presence of a smuggling network involving 78 alleged corrupt Customs officers and smugglers, as preliminary information reveals how money was collected and distributed among the members of the network. Government sources told The Express Tribune that the Prime Minister's Office has asked the Federal Board of Revenue (FBR) about the presence of the smuggling network, which was uncovered by one of the premier intelligence agencies. The Express Tribune published a story last week, disclosing that one of Pakistan's leading intelligence agencies had identified the smuggling network and that the FBR had launched a fact-finding inquiry. Sources said the FBR informed the Prime Minister's Office that it was currently in the process of conducting the inquiry, and the report will be shared by February 28th. The fact-finding inquiry is being led by Basit Maqsood Abbasi, Chief Collector of Customs Enforcement, and Nayyer Shafiq, Collector of Customs Appraisement, Karachi. The premier is personally overseeing the matter, demonstrating his commitment to eliminate corrupt elements from the bureaucracy and plug revenue leakages. The smuggling has been causing significant economic losses and resulting in reduced local production. Businesses are also being sidelined by the influx of cheaper imported goods from China. The chairman of the FBR had ordered the inquiry to determine the involvement of Customs officials in facilitating smuggling for monetary gain. Sources said the prime minister insisted on a comprehensive investigation to dismantle the network completely and identify all beneficiaries. FBR spokesperson Najeeb Memon did not respond to a query about the prime minister's intervention in the matter. The intelligence agency uncovered a network of 78 Customs officials and smugglers involved in smuggling non-customs paid goods from Quetta to Multan, Dera Ghazi Khan, Lahore, and Rawalpindi. Of those, 37 were Customs officers, and 41 were private smugglers. Some individuals identified in the agency's report hold important positions in the federal setup, according to government sources. The names of the collectors, additional collectors, and deputy collectors of Customs have been mentioned in the report. These officers serve in grades 18, 19, and 20. Out of the 37 Customs officers, around 12 have served in key positions, according to the details. These officers have served in Lahore, Multan, Dera Ghazi Khan, and Islamabad, the sources said. The network smuggled non-customs paid goods, including cigarettes, tyres, and clothes, from Quetta to major consumption centers in Punjab. Alleged bribes ranged from Rs2 million to Rs30 million per month, according to the initial information gathered by the intelligence agency. Some of the alleged proceeds were also used to cover the Customs office's expenditures, the sources said. One of the key officers allegedly received up to Rs30 million per month in kickbacks. Another officer is accused of pressuring small-scale smugglers to join the larger network, according to the sources. The front men were tasked with depositing the collected money with a driver who had been working with a senior officer for some time, according to the allegations. The driver was on deputation at the Customs office and also served as a transportation officer, said the sources. There are concerns that the proceeds may have been laundered abroad. One officer allegedly ensured that duty shifts did not stop and that containers carrying smuggled goods were not examined, according to the sources. Another officer is accused of facilitating the smuggling of liquor and non-duty-paid iPhones. At least one Customs official's role was to manage the transfer and posting of staff to facilitate the smuggling. One person allegedly collected millions of rupees in bribes each month for clearing illegal goods, with the money being distributed among key officers.
Express Tribune
14-02-2025
- Politics
- Express Tribune
Govt orders inquiry into smuggling
Listen to article ISLAMABAD: The government has ordered a fact-finding inquiry after an intelligence agency uncovered a network of 78 alleged corrupt Customs officers and smugglers involved in smuggling goods from Quetta to Punjab and Islamabad. Some individuals identified in a report by one of Pakistan's premier intelligence agencies hold key positions in the federal setup, revealed government sources. A top Federal Board of Revenue (FBR) official confirmed the development to The Express Tribune. "The Chairman of FBR, Rashid Langrial, has ordered the Member Customs to launch a fact-finding inquiry into the affairs of various officers and officials of Pakistan Customs, as well as certain private individuals (of the smuggling network) based on a source report received in his office," a senior FBR official said. The Express Tribune had sent separate questions to both the FBR and the Ministry of Finance, but neither responded officially. The top tax official further said that the inquiry would be led by Chief Collector of Customs Enforcement Basit Maqsood Abbasi, who will be assisted by another officer. Concerns about the impartiality of the inquiry have emerged, as some of these officials hold significant positions. The FBR official said that at this stage, it is a fact-finding inquiry, which is expected to conclude by the end of this month. The official added that further action will be taken once the fact-finding report is finalised. When asked whether the chief collector could ensure a fair inquiry, given that some accused individuals hold critical positions, the FBR official stated that the head of the inquiry has a strong reputation and cannot be influenced. The FBR official also mentioned, "The source report is reportedly based on confessions made by certain officials and smugglers who had previously been apprehended and investigated by the agency." Sources expressed concerns that the proceeds from the crime might be parked outside Pakistan through members of the network. However, it remains unclear whether the Customs official-headed inquiry will extend to investigating these allegations. Another government official remarked that the matter could be handed over to an agency with the resources to conduct investigations both inside and outside Pakistan. Thirty-seven allegedly corrupt Customs officials and 41 smugglers have been identified as part of the network, which is said to have smuggled various goods, including cigarettes, tyres, and clothes, from Quetta to major consumption centers in Punjab. Independent studies have suggested that cigarette smuggling alone is causing Rs250 billion ($900 million) in revenue losses. Sources noted that the FBR and the military establishment have jointly initiated an effort to tackle smuggling, which is severely damaging the economy and undermining domestic production. The government is also in the process of setting up new anti-smuggling posts along the Indus River as part of its ongoing anti-smuggling campaign. The top FBR official revealed that a journalist was also named in the network, which predominantly operated in Punjab. Last year, the FBR had appealed to the public to refrain from using smuggled items, as such goods negatively impact the sale and purchase of local products, thereby harming the country's economy. The involvement of FBR officials in the smuggling network raises serious concerns about the extent of the network's penetration within the country, which could undermine the civil-military efforts to combat illegal trade. Due to a mismatch between the assets and income sources of civil servants, the International Monetary Fund (IMF) has imposed a condition requiring the FBR to make public the income tax returns and wealth statements of civil servants and their spouses. The global lender has called for a risk-based verification of the information disclosed by civil servants, with possible penalties and investigations for officers whose assets exceed their declared income sources, according to government sources. However, due to a narrow definition of "civil servant," it is estimated that only around 25,000 civil servants' assets will be disclosed even after amendments to the Civil Servants Act as part of the IMF's condition for the $7 billion package, the sources added. Officers of autonomous bodies, regulatory bodies such as the State Bank of Pakistan, the National Electric Power Regulatory Authority, the Oil and Gas Regulatory Authority, the Pakistan Telecommunication Authority, and provincial civil services will remain exempt from digitally filing returns and their subsequent public disclosure. According to an article by Ali Salman, the Chief Executive of PRIME, the overall loss to the national exchequer from illegal trade, smuggling, and tax evasion could range between Rs1.5 trillion and Rs2 trillion. According to the Transnational Alliance on Combating Illicit Trade (TRACIT), Pakistan ranks 72nd out of 84 countries on the "Global Illicit Trade Environment Index," published by the Economist Intelligence Unit.
