FBR transfers raise questions on ongoing investigations into benami transactions, money laundering: report

The recent transfer of two senior Federal Board of Revenue (FBR) officials from Karachi to Islamabad has sparked controversy, particularly concerning the future of ongoing investigations into alleged benami transactions and money laundering in vehicle imports, Business Recorder reported.  

Although the FBR claims these transfers are routine administrative actions, the timing has raised suspicions regarding potential interference in high-stakes investigations.

Abdul Hameed Abro, who was serving as Commissioner (Ops) Inland Revenue, Benami Zone-III in Karachi, was transferred after leading a crackdown on benami transactions in vehicle imports. 

In a social media post, Abro suggested that his transfer was linked to his enforcement actions against powerful lobbies involved in vehicle imports. He claimed that his efforts to curb misuse of the baggage and gift schemes in vehicle imports had led to his removal. 

Abro defended his actions, stating that they were in the national interest and aimed at protecting the treasury from significant losses due to fake documentation and the abuse of import schemes.

Under Abro’s leadership, the Benami Zone-III launched an extensive investigation into the misuse of the Vehicle Baggage and Gifts Scheme (VB&GS), which had allegedly been exploited by commercial importers with suspected backing from customs officials. 

The investigation, covering vehicle clearances between February 2018 and May 2025, sought comprehensive documentation from the implicated parties, including import records, customs declarations, contracts, and bank statements.

According to the news report, Sheeraz Ahmad, Director of Post Clearance Audit (PCA), South, was also transferred to Islamabad. Ahmad had been instrumental in auditing Pakistan’s “Faceless Customs Assessment (FCA)” system, which uncovered widespread irregularities in luxury vehicle imports. His audit revealed significant under-invoicing and the use of illegal money transfer networks (hawala and hundi) for transactions. The audit also identified a revenue leakage of approximately Rs 38 billion, attributed to technical flaws in the FCA system.

The transfers of both officials have raised concerns about the future of these investigations, particularly regarding the continuity of enforcement efforts. 

However, the FBR maintains that the transfers are routine, but the timing and context have led to doubts about whether the investigations will continue with the same level of scrutiny or be shelved entirely.