The Federal Investigation Agency (FIA) has registered a criminal case against the Chief Executive Officer of GO Petroleum and several other individuals over the alleged illegal sale of bonded petroleum products, a scheme that investigators say caused losses worth billions of rupees to Pakistan’s national exchequer through evasion of customs duties, taxes, and petroleum levy.
According to a First Information Report (FIR) filed by the FIA’s Corporate Crime Circle in Karachi, the accused allegedly diverted bonded petroleum products into the local market without completing mandatory customs clearance procedures or paying the applicable government duties and taxes.
Under Pakistan’s customs laws, bonded petroleum products remain under customs control and cannot be sold, transported for consumption, or released into the domestic market until importers submit the required customs declarations and clear all applicable duties, taxes, and petroleum levy.
Fuel Allegedly Moved Through Pipeline Network
The FIR alleges that the petroleum products were transported from Port Qasim to Mehmoodkot through the White Oil Pipeline and the PARCO pipeline network while the cargo was still officially under bond.
Investigators claim the accused used forged documents and manipulated official records to conceal the alleged irregularities and facilitate the unlawful sale of bonded fuel in Pakistan’s domestic market.
Seven Individuals and Two Companies Named
The FIA has nominated seven individuals and two companies in the case, including:
- GO Petroleum CEO Khalid Riaz
- Terminal One CEO Fiaz Ahmed
The suspects have been booked under multiple provisions of the Customs Act, 1969, the Pakistan Penal Code (PPC), and the Prevention of Corruption Act, 1947.
Investigation Expands to Financial Records and Public Officials
The FIA is examining financial records, import documentation, customs declarations, and related transactions to determine the full extent of the alleged fraud and calculate the total financial loss suffered by the national treasury.
Investigators are also probing the possible involvement of officials posted at Port Qasim, Faisalabad, and Lahore, as well as officials from the Oil and Gas Regulatory Authority (OGRA).
At this stage, no officials from the pipeline operating companies have been named as accused.
More Arrests Possible
The FIA stated that the investigation has been widened and that additional individuals from both the public and private sectors may be included if evidence establishes their involvement in the alleged tax evasion and customs fraud.
The investigation is being led by FIA Assistant Director Umayad Arshad Butt, while the case has also been referred to two special courts in Karachi for further legal proceedings.
The case is expected to remain under investigation as authorities continue to scrutinize customs records, petroleum imports, and financial transactions linked to the alleged multi-billion-rupee tax evasion scheme.