Betel nut import rules: Ministry orders fact-finding probe into illegal changes

KARACHI: The Ministry of National Food Security and Research has ordered a fact-finding inquiry into allegations that government officials made unauthorized alterations to betel nut import regulations, triggering a new controversy in the multi-billion-rupee untaxed trade that has long plagued the country’s revenue system.

The ministry announced the formation of a two-member committee tasked with investigating significant discrepancies between an approved draft protocol and the version that was officially notified in October 2025.

The committee has been directed to determine who made the unauthorized changes and recommend appropriate disciplinary action against those responsible.

The inquiry centres on accusations that a notification issued on October 17, 2025, materially differed from a draft that had been approved by the ministry in September 2025, according to a comprehensive 13-point report submitted by Dr. Attaullah Khan, director general and adviser of the Department of Plant Protection (DPP).

READ MORE: Customs trying to auction off 200 tons of contaminated betel nuts

Khan’s report has become the centrepiece of an investigation that exposes what appears to be a deeper pattern of administrative irregularities, alleged corruption, and systemic failures in the country’s import control system.

The controversy erupted over efforts to modernize betel nut import procedures following a series of meetings with the Commerce Ministry in August 2025. Officials involved in the reform process sought to eliminate what they characterized as weak local testing mechanisms that had become sources of disputes and litigation.

The goal was to replace the existing system with offshore compliance measures that would streamline the import process while maintaining quality standards and phytosanitary controls.

The original draft protocol, finalized on September 29, 2025, was carefully designed to shift laboratory testing responsibilities to exporting countries while simultaneously upgrading domestic controls through an automated, risk-based inspection system.

This system was to be integrated with Pakistan Single Window (PSW), the country’s electronic customs platform designed to facilitate trade while maintaining regulatory oversight.

Khan discovered in late October that the officially notified version of the protocol mandated compulsory onshore inspection and testing of every single shipment — precisely the requirement that the reform initiative was designed to eliminate. This discovery raised immediate red flags about the integrity of the notification process.

“The protocol initially approved and concurred by MNFSR materially differed from the protocol notified by DPP,” Khan said in his report, highlighting the fundamental disconnect between what was agreed upon and what was actually implemented.

Khan, who joined the DPP on October 10, 2025, as director general and adviser, acknowledged that he signed off on the notification without fully understanding the matter. He explained that he believed the protocol had already been properly approved by the ministry and signed it in what he thought was in the interest of supporting his staff and adhering to business rules.

“I did not fully understand the matter, and upon learning that it was approved by the Ministry, I signed the notification in the interest of supporting staff and adhering to business rules,” Khan admitted in his report, acknowledging his own role in the controversy.

When confronted about the discrepancies between the approved draft and the notified version, two DPP officials mounted a defence of the changes. They argued that exempting shipments from routine inspection would constitute a violation of Pakistan Plant Quarantine Rules and could potentially allow pest infestations to enter the country.

The officials maintained that the changes were necessary from a regulatory and biosecurity perspective, despite the fact that they contradicted the ministry’s approved reform strategy.

Seeking to resolve the impasse, Khan proposed a compromise solution through an electronic system. Under his proposal, containers would undergo fumigation treatment after unloading, with only those shipments flagged by the automated risk-based system requiring physical inspection. This approach would have maintained bio-security standards while still achieving the efficiency goals of the original reform.

However, according to Khan’s report, the officials resisted this compromise solution, leading to an escalation of the dispute within the department.

On October 31, 2025, Khan took decisive action by reassigning the duties of the two officials involved in the controversy. In response, one of the officials stopped reporting to work entirely and filed a court petition seeking protection from what he characterized as coercive administrative action.

The official was subsequently transferred to Bahawalpur, though members of his team continued working at the department, creating an unusual administrative situation.

Khan’s report went far beyond the betel nut protocol controversy, alleging that the team led by one of the officials had committed multiple administrative violations across various areas of responsibility.

The report accused the team of mishandling correspondence with Indonesia, which resulted in mandatory pesticide testing requirements for Pakistani citrus exports dramatically jumping from eight compounds to 24 compounds over three years. This increase has had significant implications for Pakistani citrus exporters, adding costs and delays to their operations.

Additional allegations included delays in communications with Uzbekistan and other trading partners, which damaged Pakistan’s trade relationships and credibility in international agricultural commerce.

The report also cited irregularities in pesticide registration procedures, including allegations that the team allowed continued registration of substances that had been banned, processed registrations from unregistered sources, and engaged in fee embezzlement.

Trade associations, including REAP, APTTA, CLP, PCPA, and APTMA, lodged formal complaints against the two officials, according to Khan’s report. These complaints from major industry bodies led to the suspension of one of the officials, demonstrating the broader impact of the alleged administrative failures on the country’s export sector.

Implementation of the revised protocols remains stalled due to technical dependencies that are beyond the department’s immediate control, Khan acknowledged in his report. These obstacles include the need to obtain electronic phytosanitary certificates from Indonesia, a process that requires bilateral cooperation and technical infrastructure.

Additional challenges include enlisting pre-shipment inspection agencies that are willing and qualified to handle betel nut consignments in exporting countries, and developing the necessary database fields in Pakistan’s customs system to support the new protocols.

Meanwhile, sources familiar with the matter have alleged that the motive behind the unauthorized changes to the notification was financial corruption involving millions of rupees in bribes. The sources claimed that rather than identifying and removing corrupt officials within the department and ensuring strict compliance with approved protocols while strengthening local testing mechanisms, authorities decided to shift to offshore compliance measures.

“This approach would create opportunities for unscrupulous importers to bring inferior quality betel nuts into Pakistan without fear of detection, especially since Khan himself acknowledged in his report that the department lacked mechanisms to verify electronic phytosanitary certificates from Indonesia or authenticate offshore laboratory testing reports,” sources said.

Sources further alleged that the unauthorized changes made to the notification were designed to secure millions of rupees in undue gains for DPP officials who sought to maintain the existing system, where they allegedly received bribes from importers to manipulate laboratory testing reports in their favour.

According to the sources, both DPP and Pakistan Standards and Quality Control Authority (PSQCA) officials have been receiving millions of rupees in bribes from importers to manipulate laboratory testing reports in their favour, which is why these officials have been working to reverse the decision.

Sources further revealed that customs enforcement officials, particularly in Karachi, are also collecting millions of rupees every month from betel nut smugglers in exchange for turning a blind eye to their smuggling operations. This alleged corruption has resulted in local markets being flooded with smuggled betel nuts, causing severe annual revenue losses estimated at more than 100 billion rupees.

“More than 650 containers of betel nuts are reportedly being smuggled every month, while official data shows merely 50 containers are being imported each month — a gap that has raised alarm about systemic mega corruption being committed by the customs enforcement officials, particularly in Karachi”, sources said, highlighting the enormous disparity between actual smuggling volumes and official import statistics.

Sources characterized the actions taken by customs enforcement in Karachi as dubious, noting that officials only make insignificant seizures of smuggled goods, typically from small warehouses. Sources, however, believed such selective enforcement occurs due to non-cooperation with customs enforcement staff — a euphemism for officials who refuse to pay bribes.

“Why does the staff of customs enforcement Karachi take action against smuggled goods in small warehouses and always appear reluctant to launch mega anti-smuggling operations at Al-Asif Square, Sohrab Goth, which has now become the hub of smuggled goods, including betel nuts, within the city,” sources questioned, pointing to specific locations where large-scale smuggling allegedly occurs with impunity.

Sources claimed that massive quantities of betel nuts and other smuggled goods are being traded openly at Al-Asif Square and Sohrab Goth, yet customs enforcement in Karachi lacks the courage to take action because officials are allegedly receiving millions of rupees in bribes from these smugglers, particularly those dealing in betel nuts.

When contacted for comment, a senior customs official posted in customs enforcement Karachi provided what appeared as a dubious explanation. The official claimed that customs enforcement in Karachi was restrained by a court order from taking action against sweet supari or other manufacturing units that produce finished goods using smuggled raw materials.

However, when asked to produce the court order to substantiate this claim, the official failed to do so, showing his seriousness in performing his duties.

Sources have also urged Prime Minister Mian Muhammad Shehbaz Sharif to constitute another fact-finding committee to investigate the illicit trade of smuggled betel nuts and examine the role of customs enforcement in Karachi, specifically to plug the revenue leakages being done due to a ‘systematic failure’.

Copyright Business Recorder, 2025