Lasbella- and Hub-based cos: PCA South exposes Rs977m evasion via EFS

KARACHI: Post Clearance Audit (PCA) South has uncovered a major tax evasion scheme involving two Lasbella Hub-based companies, defrauding the national exchequer of Rs. 977 million through Export Facilitation Scheme (EFS) manipulation.

According to the FIR, the investigation, launched by DG PCA Dr. Zulfikar Ali Chaudhry and led by Director PCA South Sheeraz Ahmed in mid-December 2024, revealed a complex web of fraudulent activities against these accused companies.

The export pattern raised suspicion when their shipments suddenly jumped from one container monthly to 47 containers in January 2025, despite lacking manufacturing facilities.

A thorough inspection at one of the accused companies revealed significant inventory discrepancies.

Of the 1,560 MT lead ingots imported under EFS, only 111 MT was exported, with the remaining quantity missing.

Similarly, of the 2,751 MT lead ingots imported for home consumption, only 307 MT was found available, with large stocks unaccounted for.

The investigation uncovered that one for the accused companies was manufacturing lead ingots under its brand, which were then falsely exported under the name of second accused companies.

The total value of offended EFS goods reached Rs. 1.6 billion, with missing EFS goods valued at Rs. 873 million.

These companies evaded Rs. 977 million in duties. Both companies’ National Tax Numbers (NTNs) and Sales Tax Registration Numbers (STRNs) were found suspended on FBR’s Tax Payer List.

In response, PCA South has filed an FIR and formed two teams to investigate the fraudulent exports. Nationwide alerts have been issued to all export collectorates regarding potential fraudulent exports by the accused companies as authorities continue their efforts to apprehend involved parties and collaborators.

The case underscores the increasing sophistication of tax evasion schemes and highlights the authorities’ determination to protect the national economy through rigorous enforcement measures.

The investigation remains ongoing as officials work to bring all responsible parties to justice and prevent further misuse of the Export Facilitation Scheme.

Copyright Business Recorder, 2025