ISLAMABAD – A nationwide audit of all import and export sheds operated by Gerry’s Dnata has been ordered following serious allegations of a large-scale cargo fraud and duty evasion scheme at Karachi’s Jinnah International Airport (JIAP).
Reports said the scheme is believed to have caused losses amounting to billions of rupees.
The Federal Tax Ombudsman (FTO) has issued formal directors to the Federal Board of Revenue, instructing the Member Customs (Operations) to ensure that the Collector of Customs at JIAP initiates proceedings for the suspension of Gerry’s Dnata’s cargo shed license.
The process includes serving a Show Cause Notice (SCN) to the company’s CEO, followed by a hearing. If the investigation confirms the charges, the cargo shed license may be revoked.
The investigation was triggered by an October 2, 2025, report highlighting allegations that a UAE-based cargo handler at JIAP had been illegally removing high-value imported goods for over 18 months. The fraud is said to have involved collusion with Customs officials, leading to the illicit removal of consignments of electronics without paying the required duties. The fraudsters allegedly used forged documents and reused clearance numbers from earlier consignments, including pharmaceutical shipments.
The FTO has also ordered an inquiry into the possible involvement of Customs personnel in the scheme. After a fact-finding process, the case will be referred to the Federal Board of Revenue (FBR) for further disciplinary action.
In its statement, the FTO noted that the Customs Department’s failure to prevent these violations constitutes maladministration. A similar theft involving mobile phones was reported earlier, but no significant action was taken. The ongoing fraud points to systemic failures, and the FTO aims to uncover the full scale of the wrongdoing through the audit.
The company is yet to issued an official statement in this regard.
