KARACHI: In a shocking revelation, the Pakistan Customs Authorities-PCA South region has exposed a colossal tax evasion scandal involving M/s Eastern Steel Karachi. The scam centered around goods worth Rs 2 billion that were imported through gross misuse of the Export Facilitation Scheme (EFS), enabling the company to dodge taxes of nearly Rs. 358 million, while evasion figure is expected to rise substantially as investigations proceeds.

Investigations surfaced staggering anomalies when the auditors scrutinized M/s Eastern Steel’s import and consumption records. The probe led to the discovery that an overwhelming 2,961 metric tons of exempt assorted scrap goods had been stealthily removed and sold in clear violation of the tax regulations.

The proprietor of the firm, Hafiz Muhammad Shahzad, was confronted with the egregious gaps in his inventory. Despite being tasked with justifying the stark disparity between the imports, factory outputs, and various business facets—including labor employment, factory size, utility consumption, and waste transport—he failed to produce any credible explanation. The pretext of ignorance or accounting errors quickly dissipated, leaving only the shadow of deceit and deliberate circumvention of the law.

In light of these findings, an FIR has been lodged, marking the commencement of a rigorous investigation to bring the accused individuals, including Hafiz Muhammad Shahzad, to book. This development is part of FBR’s unwavering commitment to uphold justice and financial integrity.

The exemplary crackdown on M/s Eastern Steel was orchestrated under DG PCA Chaudhary Zulfiqar Ali and Director PCA South, Sheeraz Ahmed. Their teams’ tenacity and insight were paramount in unraveling the multi-million rupee fraud. By taking this stern action, the PCA has reinforced its stance against economic malfeasance and issued a resounding deterrent to those entertaining similar illicit ambitions.

This decisive move stands as a testament to the nation’s resilience against economic crime and is a pivotal step in safeguarding the integrity of Pakistan’s financial system. The extent of this corruption is a stark reminder of the importance of vigilance and accountability. With the PCA’s diligent approach and FBR’s resolve, the public can rest assured that such fraudulent activities will be assiduously weeded out, safeguarding the nation’s economic future.