Pakistan's Biggest Money Laundering Scandal Unmasked in Luxury Vehicle Imports

The Directorate General of Customs' Post Clearance Audit (PCA) has uncovered a massive under-invoicing and money laundering operation involving luxury vehicles imported via the faceless customs system. According to a 127-page report detailed by The Express Tribune, this constitutes the largest trade-based money laundering scandal in Pakistan's history surrounding luxury vehicle imports.

The audit report outlines how importers deliberately undervalued vehicles to avoid paying billions in taxes. A notable case involved a 2023 Toyota Land Cruiser, valued over PKR 10 million, being cleared at just PKR 17,635—with alleged assistance from customs officials. Covering data from December 2024 to March 2025, the audit revealed substantial discrepancies between reported and actual values, with differences exceeding PKR 1 million for many vehicles. The declared import value was PKR 670 million, but assessments showed it exceeded PKR 7.25 billion.

By manipulating values, importers paid a mere PKR 1.29 billion in duties, evading about PKR 18.78 billion. No evidence was offered proving legitimate overseas payments for these vehicles, raising suspicions of illegal transactions via hawala and hundi networks. The audit discovered 99.8% of Land Cruisers imported during the period were under-invoiced to avoid taxes, posing risks to Pakistan's financial system. The report has been forwarded to relevant authorities for a thorough investigation and legal proceedings against those involved.

(With inputs from agencies.)