KARACHI: A ghost manufacturing unit has allegedly orchestrated massive money laundering worth Rs 2.4 billion and brazenly siphoned off tax revenue amounting to over Rs 215 million through false tax exemptions under the very noose of Pakistan Customs.
According to the documents, this financial fraud was caught by the Post Clearance Audit (PCA) South, following credible intelligence that prompted an immediate and comprehensive investigation into this Karachi-based phantom manufacturing unit in March 2025.
The investigation, led by Director PCA South, Sheeraz Ahmed, targeted a company exploiting the system through its manufacturing status.
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The PCA South, during a preliminary scrutiny based on FBR data, found several discrepancies, unraveling the manufacturing unit as a “ghost” unit after physical inspection.
The manufacturing unit at the mentioned address contained only small rental weaving units with no embroidery machinery, and occupants of the location categorically denied any association with the accused firm. However, the electricity records also confirmed the fraudulent claims, revealing a disconnected electricity meter and negligible power consumption over the preceding months, the documents said.
On the other hand, the registered head office of the company was nothing but a shop containing only a plastic chair and a table, rented to a clearing agency, which failed to confirm the whereabouts of the accused ghost company owner and remained unable to produce any documentary evidence of the company’s operational status.
The investigation further revealed that the company, which had no manufacturing facility, was misusing its “manufacturing status” to claim exemptions and concessionary tax rates of duty/taxes at the import stage. In addition, this unit is also involved in the sale of imported embroidery machines and other items locally.
Furthermore, the substantial volume of imports was fundamentally inconsistent with the company’s financial standing, which prompted the PCA to launch a comprehensive investigation into potential money laundering activities.
The investigation uncovered extensive malpractices involving illicit financing of imports totaling Rs 2.4 billion across 135 import declarations, with an estimated duty and tax evasion of Rs 218 million and systematic exploitation of manufacturing tax exemptions.
Consequently, a case has been registered and further investigation is underway to nab all responsible persons.
Copyright Business Recorder, 2025
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