On August 5, 2025, the Directorate General of Post Clearance Audit uncovered a significant money laundering scheme involving under-invoiced luxury vehicle imports in Pakistan.
The audit, which spanned from December 2024 to March 2025, reviewed 1,335 import goods declarations and revealed notable discrepancies. For example, a 2023 Toyota Land Cruiser was declared at a mere Rs17,635, while its market value exceeds Rs10 million.
The audit revealed that importers reported a total value of Rs670 million for the vehicles, while their actual worth was Rs7.25 billion. Initially, the total amount collected in duties amounted to Rs 1.29 billion, but the estimated amount owed was Rs 18.78 billion.
One notable case involved a Land Cruiser that was under-invoiced by 99%, resulting in tax evasion of Rs47.2 million. Additionally, importers failed to provide legal documentation for foreign currency remittances, indicating a possible reliance on informal channels such as hundi or hawala.
The report highlights issues of tax fraud and false income declarations, as importers misrepresented vehicle values in their tax filings. Authorities are expected to respond to these findings and address the weaknesses in the faceless customs assessment system. This exposure reveals systemic problems in customs clearance, which could lead to stricter regulations.
In a separate audit for 2023–24, 80 government vehicles purchased for Khyber Pakhtunkhwa’s Livestock and Dairy Development Department between 2007 and 2021 were found missing, with discrepancies between the department’s 97-vehicle list and Excise Department records.
