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. This aggressive crackdown, personally greenlit by Prime Minister Shehbaz Sharif, aims to recover billions in lost revenue and hold accountable those exploiting schemes designed for overseas Pakistanis.
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 by allowing them to bring in personal vehicles. Instead, these schemes have allegedly been hijacked by commercial importers using a sophisticated network of clearing agents and, in some cases, complicit customs officials to flood the market with untaxed cars, masquerading them as personal imports.
The FBR has meticulously zeroed in on vehicle clearances from February 2018 to May 2025, a period during which the alleged malpractices proliferated. As part of its intensified efforts, the FBR has begun issuing stringent notices to clearing agents involved in these transactions, demanding detailed documentation within a tight seven-day deadline. Required submissions include comprehensive import records, customs declarations, data on the true beneficiaries of the imports, CNICs, bank statements, relevant contracts, and detailed explanations justifying how commercially imported vehicles were cleared under personal import schemes.
FBR officials have unequivocally accused the clearing agents of deliberately concealing the identities of actual car owners, forming a vast network of Benami operations that have cost the national exchequer billions in lost revenue. The FBR has made it clear that failure to comply with these directives will trigger severe criminal proceedings under the Benami Transactions (Prohibition) Act, 2017, underscoring the government’s unwavering resolve to prosecute all those involved.
Insiders close to the investigation revealed that Prime Minister Shehbaz Sharif personally directed authorities to halt the widespread misuse of overseas Pakistani passports in car imports under residence, baggage, and gift schemes. This directive underscores the government’s commitment to eradicating financial irregularities and ensuring equitable tax collection.
Despite the government’s previous attempts to plug loopholes through the 2022 Import Policy Order—which mandated proof of foreign exchange through Proceed Realization Certificates (PRCs)—the FBR has now uncovered a disturbing new trend. Investigations have revealed the submission of fake PRCs, facilitated with the alleged assistance of certain private banks, enabling the illegal clearance of vehicles. This new discovery has broadened the scope of the FBR’s investigation to include financial institutions suspected of complicity.
Officials warn that without a robust and dedicated commercial import policy for used cars, the existing loopholes will continue to be exploited, perpetuating the cycle of tax evasion. The FBR has unequivocally signaled its determination to not rest until the entire Benami car import nexus is completely dismantled, and all culprits, including rogue banks and individuals facilitating these illicit activities, are brought to justice. This crackdown marks a significant step towards transparency and accountability in Pakistan’s import sector.
