KARACHI, July 30, 2025 – In a dramatic enforcement blitz, the Federal Board of Revenue (FBR) has unleashed a sweeping investigation into Benami transactions linked to the import of old and used cars, signaling a no-holds-barred approach to dismantling one of Pakistan’s most entrenched tax-evasion rackets.
The probe, spearheaded by FBR’s anti-Benami zone, targets the rampant abuse of the Vehicle Baggage and Gift Schemes—programs originally intended to benefit overseas Pakistanis. Instead, these schemes have allegedly been hijacked by commercial importers using clearing agents and complicit customs officials to flood the market with untaxed cars.
The FBR has zeroed in on vehicle clearances from February 2018 to May 2025, issuing notices to clearing agents with a tight seven-day deadline to submit detailed documentation. These include import records, customs declarations, data on true beneficiaries, CNICs, bank statements, contracts, and explanations justifying how commercial cars were cleared under personal import schemes.
FBR officials accuse the agents of deliberately concealing the identities of actual car owners in a vast network of Benami operations that cost the national exchequer billions in lost revenue. Failure to comply will trigger criminal proceedings under the Benami Transactions (Prohibition) Act, 2017, showcasing the government’s resolve.
Insiders revealed that this aggressive crackdown was personally greenlit by Prime Minister Shehbaz Sharif, who directed authorities to halt the misuse of overseas Pakistani passports in car imports under residence, baggage, and gift schemes.
While the government tried to plug loopholes through the 2022 Import Policy Order—requiring foreign exchange proof via Proceed Realization Certificates—FBR has now discovered a disturbing trend: fake certificates submitted with the help of private banks, enabling illegal clearances.
Officials warn that without a dedicated commercial import policy for used cars, the loopholes will persist. The FBR has now signaled it will not rest until the entire Benami car import nexus is dismantled, and all culprits, including rogue banks, are brought to justice.