Karachi: A major corruption scandal has rocked the Collectorate of Customs in Karachi, with a First Information Report (FIR) filed against several individuals, including a Customs Appraising Officer, for allegedly engaging in corrupt practices that led to significant revenue loss. The FIR was lodged by Mr. Imran Aslam Gul, Principal Appraiser at the Collectorate of Customs, following a preliminary investigation into the matter.
The primary accused in the case is Muhammad Ismail, an Appraising Officer posted in the Customs Appraisement Unit (CAU). He is alleged to have colluded with private individuals and customs agents to collect illegal gratification in exchange for facilitating the clearance of goods declarations (GDs). Other individuals named in the FIR include Muhammad Ibrahim, an RPM Operator at the Directorate of NNDA, Ayaz Ali, Syed Noman Ali (a former PRAL employee), and several clearing agents and private persons.
The FIR alleges that Ismail, along with his accomplices, obtained sensitive customs clearance data, including the names and contact details of importers and customs agents, from Syed Noman Ali, a former PRAL employee. This data was then used to contact customs agents and demand illegal payments in exchange for clearing their goods declarations.
According to the FIR, the accused used a sophisticated network to carry out their illegal activities. Muhammad Ismail allegedly shared Excel files containing details of GDs filed and cleared between December 1, 2024, and January 24, 2025, with his accomplices. These files, titled ‘Agents’, ‘Faceless’, and ‘Facelace 01 to 24’, were used to identify and contact customs agents who had filed GDs assessed by Ismail.
The accused also created WhatsApp groups, including one titled ‘Recovery Section CAU’, to coordinate their activities. Ayaz Ali, one of the key accomplices, admitted in a written statement that he collected payments from customs agents on behalf of Ismail, leading to significant revenue loss for the government.
The investigation uncovered incriminating evidence from WhatsApp chats retrieved from the mobile phones of Muhammad Ismail and Ayaz Ali. The chats revealed that the accused were in constant communication with various customs agents and their representatives. Ayaz Ali was reportedly responsible for collecting payments from these agents, with the transactions being discussed and confirmed through WhatsApp messages.
In one instance, Ismail shared a link to a ‘Faceless Assessment Working Form’ with a clearing agent, explaining how appraising officers in the CAU could be contacted using the form. Another clearing agent, Tariq Hikhar, owner of M/s Champion Shippers, created WhatsApp groups where the names of appraising officers were added, further facilitating the illegal activities.
The FIR has been filed under Clause (82) and (86) of Section 156(1) of the Customs Act, 1969, read with relevant provisions of the Criminal Procedure Code (CrPC). The accused are charged with fraud, illegal gratification, and causing revenue loss to the government. The case has been referred for further investigation, and the competent authorities have approved the lodging of the FIR.
This case highlights the ongoing challenges faced by customs authorities in combating corruption and ensuring transparency in the clearance of goods. The involvement of both customs officials and private individuals in such schemes underscores the need for stricter oversight and accountability within the system.
The investigation is ongoing, and further details are expected to emerge as authorities delve deeper into the case. If found guilty, the accused could face severe penalties, including imprisonment and fines, under the Customs Act and other relevant laws.
The Collectorate of Customs has assured the public that it is committed to rooting out corruption and will take all necessary steps to ensure that such incidents are prevented in the future.
An official said that the contacts of importers and agents with Customs officials is still on but importers and clearing agents say that now they are working on their own terms.
In past, PaCCS was initially launched, it had the same features and controlled corruption. But after new collector came, the most lucrative post was Collector PaCCS.
Moreover, In a significant move to enhance the efficiency and transparency of Pakistan’s maritime and customs operations, the Federal Board of Revenue (FBR) has established a Facilitation Mechanism aimed at revamping the country’s ports, off-dock terminals (ODTs), and dry ports. The initiative, announced through an office order issued on January 2, 2025, is part of the government’s broader efforts to streamline customs processes, address stakeholder grievances, and improve the ease of doing business in Pakistan.
The FBR has assigned senior officers of the Pakistan Customs Service (PCS) to lead various subgroups under the newly formed Facilitation Mechanism. The officers, ranging from BS-18 to BS-21, have been given specific responsibilities to oversee different aspects of the maritime and customs sectors:
1. Mr. Muhammad Yaqoob Mako (PCS/BS-21) – Member of the Federal Board of Revenue (HQ), Islamabad, has been appointed as the Head of the Facilitation Mechanism. He will be stationed in Karachi and will oversee the overall functioning of the initiative.
2. Ms. Nausheen Riaz Khan (PCS/BS-19) – Secretary of the Federal Board of Revenue (HQ), Islamabad, will lead the Off-Dock Terminals (ODTs) Facilitation Group.
3. Mr. Tausif Aman (PCS/BS-19) – Secretary of the Federal Board of Revenue (HQ), Islamabad, will head the Ports Facilitation Group.
4. Mr. Ali Mohtashim Minhas (PCS/BS-18) – Second Secretary at the Transformation Delivery Unit (TDU), FBR (HQ), Islamabad, will manage the Dry Ports/Land Ports Facilitation Group in addition to his existing duties.
5. Mr. Shakeel Ahmed (PCS/BS-18) – Second Secretary at the Federal Board of Revenue (HQ), Islamabad, will lead the Technical Facilitation Group.
The Facilitation Mechanism has been established with the following key objectives:
– Ensuring Effectiveness of Customs Regime: The initiative aims to improve the efficiency of customs operations across ports, ODTs, and dry ports.
– Promoting Transparency: The mechanism will focus on enhancing transparency in customs processes to reduce corruption and malpractices.
– Addressing Stakeholder Grievances: A key goal is to resolve issues faced by stakeholders, including importers, exporters, and customs agents.
– Ensuring Adherence to Laws and Regulations: The initiative will ensure that all customs operations comply with relevant laws and regulations.
– Identifying Areas for Improvement: The Facilitation Mechanism will identify bottlenecks in the system and propose solutions to enhance efficiency.
– Improving Ease of Doing Business: By streamlining processes, the initiative aims to make it easier for businesses to operate in Pakistan.
The Head of the Facilitation Mechanism, Mr. Muhammad Yaqoob Mako, will be responsible for selecting team members for each subgroup. The final list of team members will be forwarded to the FBR for approval within a week of the issuance of the notification. Additionally, detailed Standard Operating Procedures (SOPs) will be issued separately to guide the implementation of the initiative.
The Directorate General of Reforms & Automation has been tasked with ensuring the issuance of WeBOC IDs (Web-Based One Customs System) with complete visibility of all imports, exports, transshipment, transit, and inter-port movements. This system will allow the Facilitation Mechanism and its subgroups to monitor and manage customs operations effectively.
The Collectorate of Customs Enforcement in Karachi will provide secretariat and staff support to the Facilitation Mechanism. All field formations have been directed to extend full cooperation and assistance to the initiative as and when required.
The establishment of the Facilitation Mechanism is part of the government’s ongoing efforts to reform the customs and maritime sectors. By addressing inefficiencies and promoting transparency, the initiative aims to boost trade, reduce revenue leakage, and improve Pakistan’s standing in global trade indices.
The FBR has emphasized that this initiative is a priority for the government, and all stakeholders are expected to cooperate fully to ensure its success. The Facilitation Mechanism is expected to play a crucial role in transforming Pakistan’s maritime and customs sectors, making them more efficient, transparent, and business-friendly.