FBR Official Links Transfer to Action Against Powerful Lobbies

Two senior officials of the Federal Board of Revenue (FBR) have been transferred from Karachi to Islamabad, raising concerns about the future of critical investigations into alleged benami transactions and money laundering linked to vehicle imports worth trillions of rupees. While the source in FBR has described the transfers as routine administrative reshuffles, the timing and context have fueled speculation about potential interference in sensitive probes. One of the transferred officials, Abdul Hameed Abro, publicly alleged that his reassignment was a direct consequence of his crackdown on powerful lobbies involved in vehicle import irregularities, reported Business Recorder. Abro, who served as Commissioner (Ops) Inland Revenue, Benami Zone-III in Karachi, had been leading a sweeping investigation into the misuse of the Vehicle Baggage and Gift Schemes (VB&GS). In a social media post, he claimed his transfer was retaliation for enforcing the law and protecting the national treasury. “When I took action against benami transactions and the misuse of baggage and gift schemes in vehicle imports, it caused discomfort to influential lobbies,” Abro wrote on his verified account. “My only ‘fault’ was upholding the law and safeguarding public funds. I may have been transferred, but I will not be defeated. This journey will continue wherever I am.” Under his leadership, the Benami Zone-III launched a comprehensive probe into the systematic abuse of the VB&GS, a scheme originally intended for personal imports but allegedly exploited by commercial importers with the collusion of clearing agents and customs officials. The investigation, spanning vehicle clearances from February 2018 to May 2025, has demanded extensive documentation from suspected parties, including import records, customs declarations, end-user details, and bank statements. Also, Sheeraz Ahmad, Director of Post Clearance Audit (PCA), South, was transferred to Islamabad. Ahmad had been overseeing audits of Pakistan’s much-touted ‘Faceless Customs Assessment (FCA)’ system, which was designed to eliminate corruption in customs clearance. However, his team uncovered significant irregularities, including widespread under-invoicing of luxury vehicles and the use of illegal hawala and hundi networks for payments. The PCA audit under Ahmad’s supervision revealed that importers frequently failed to provide proof of legitimate foreign currency payments, suggesting the use of unregulated money transfer systems to pay actual purchase prices abroad while declaring minimal amounts to customs in Pakistan to evade duties and taxes. The audit also identified approximately Rs 38 billion in revenue losses due to technical flaws in the FCA system. Despite the FBR’s insistence that these transfers are routine, the circumstances have raised questions about the continuity of these high-stakes investigations. Both Abro and Ahmad are expected to assume their new roles in Islamabad, but concerns remain about whether the momentum of their enforcement efforts will be sustained or if the investigations will be quietly shelved. The timing of these transfers has drawn criticism from various quarters, with observers questioning whether the moves are an attempt to shield influential players implicated in the investigations. For now, the fate of these critical probes, and the billions of rupees at stake, remains uncertain.