Tag: smuggling

  • Karachi wholesale grocers announce market shutdown in protest against alleged illegal raids, fines

    Karachi wholesale grocers announce market shutdown in protest against alleged illegal raids, fines

    Wholesalers in Karachi are set to stage a market shutdown on Monday in protest of what they consider unlawful raids and penalties imposed by the district administration in an effort to combat hoarding.

    According to ARY News, Rauf Ibrahim, the Chairman of the Karachi Wholesale Grocers Association (KWGA), held a press conference today, expressing concern that the district administration’s actions have created fear among traders due to shop and go-down closures. 

    He cautioned that they would cease operations at wholesale markets on Monday unless the district administration unseals these establishments. He said if these unjust raids and fines persist, we will suspend commodity markets on Monday.

    Ibrahim alleged that the district administration is sealing shops and go-downs under the pretext of cracking down on hoarding. He cited an instance where a shop owner in Joria Bazar was fined Rs30,000 for storing just two sacks of sugar.

    He criticised the categorisation of wholesalers with 100 to 500 sacks of sugar as hoarders and stressed that traders are willing to cooperate with authorities during hoarding crackdowns.

    Ibrahim urged the administration to take decisive action against genuine hoarders.

    To combat hoarding, federal and provincial governments have initiated operations in various cities, including Lahore, Rawalpindi, Islamabad, Faisalabad, Peshawar, Quetta, and Dera Ismail Khan, resulting in the confiscation of illegally stockpiled sugar.

    Meanwhile, a spokesperson for the Utility Stores Corporation (USC) assured that there is an ample supply of sugar available at controlled prices nationwide.

  • Prize money for informants against smuggling, hoarding, illegal immigrants, says Sarfaraz Bugti

    Prize money for informants against smuggling, hoarding, illegal immigrants, says Sarfaraz Bugti

    Caretaker Interior Minister Sarfaraz Bugti said in a media talk on Sunday that the federal administration will have zero tolerance against smuggling. He also said that the caretaker government will give prize money to those who provide information on smuggling, hoarding, and illegal immigrants.

    In a joint press conference with the caretaker Minister for Information and Broadcasting Murtaza Solangi, Sarfaraz Bugti also stressed that all state institutions will go to any length to eliminate the menace of smuggling and hoarding in the country.

    The caretaker government recovered sugar and urea in a very large quantity in different parts of the country, and operations against wheat, sugar, urea, dollars, and other commodities is still continuing, he added.

    Almost 59 people who were involved in the illegal business of Hundi-Hawala have also been arrested, the security czar said.

    “But what is ironic is that now the elements involved in smuggling have started hoarding various things,” he added.

    On a question regarding terrorist attacks from Afghanistan, Bugti said that the neighbouring country should abide by the Doha Agreement, which is a surety that Afghan soil will not be used against any country.

  • Open market: PKR gains Rs30 against US dollar in just four days

    Open market: PKR gains Rs30 against US dollar in just four days

    The Pakistani rupee (PKR) has shown remarkable strength, appreciating by 4 rupees against the US dollar (USD) in the open market, with current quotes at 301/305 around noon. In just four days, the PKR gained an impressive 30 rupees (9.97 per cent), moving from PKR 331 to PKR 301 against the USD.

    Simultaneously, in the interbank market, PKR appreciated by 2 rupees in today’s session, quoted at 302.74/302.84, following a similar gain in the previous interbank session, reducing the gap between the interbank and open market to 0.57 per cent.

    This surge in the local currency is attributed to reforms by the State Bank of Pakistan (SBP) in the exchange companies sector. These reforms aim to consolidate exchange companies into a single category with a well-defined mandate and higher capital requirements, also encouraging banks to establish wholly owned exchange companies.

    An ongoing crackdown against speculators, hoarders, and smugglers has further boosted sentiment, reducing the disparity between the open market and interbank rates below the IMF’s recommended threshold.

    The black market for Hawala/Hundi has also seen a significant decline in dollar rates. Previously, rising demand for dollars due to speculation and smuggling had widened the gap between open market and interbank rates, exceeding IMF recommendations.

    The government’s initiatives effectively curb speculative activities in the open market without interbank intervention. Further improvements are expected if similar measures are taken against gold smuggling, as individuals may opt for smuggled gold investments in the absence of dollar access.

  • Karachi airport operation: Four passengers nabbed in million-rupee Apple product smuggling

    Karachi airport operation: Four passengers nabbed in million-rupee Apple product smuggling

    In a highly successful operation, customs authorities thwarted an attempt to smuggle high-value tech gadgets worth millions of rupees at Jinnah International Airport in Karachi

    According to ARY News, four passengers, who had arrived in Karachi from Dubai via a private airline, were apprehended by diligent customs officials, resulting in the confiscation of goods with a substantial valuation.

    The individuals taken into custody were identified as Azhar Iqbal, Muhammad Faisal, Azhar Gill, and Zul Noorain. 

    These passengers made an ill-fated attempt to evade customs scrutiny by utilising the green channel without declaring the valuable merchandise. However, the astute customs officials promptly intercepted them and proceeded to inspect their luggage.

    According to Superintendent Agha Najamuddin, who was in charge of the shift, a significant cache of contraband was seized from the arrested individuals. 

    This included more than 50 iPads, numerous laptops, 46 of the latest iPhone models, and 500 packs of internationally sourced cigarettes. 

    Furthermore, the customs officials initiated legal proceedings against the detained suspects, as they failed to provide adequate tax documentation to the customs staff, ensuring that justice prevails in this case.

  • Sarhad paar drugs kon smuggle kar raha hai?

    Sarhad paar drugs kon smuggle kar raha hai?

    Do you remember the news of a drone carrying drugs falling near Kahna?

    This year in July a drone carrying six kilograms of drugs, worth millions of rupees, crashed in the outskirts of Lahore. Recently a case has been registered against a senior official of the Lahore police, who headed the anti-narcotics wing of the city police, for alleged involvement in cross-border drug smuggling via drones.

    Lahore Deputy Inspector General (Investigation) Imran Kishwar confirmed the “involvement of a DSP”, saying that the official was booked by the ANF.

    “We have constituted a high-powered committee of senior police officers to further expand the scope of the investigation into the illegal cross-border smuggling of the drug,” the DIG told Dawn.

    He said that Lahore SSP Internal Accountability (IAB) Tauqeer Naeem would head the committee while SP Crime Record Officer Aftab Phularwan and a DSP would assist him in this matter.

    According to departmental sources, the issue was escalated to the prime minister after reports suggested that some elements were sending drugs from Kasur to India through drones. They further suggested that a gang of drug traffickers were using unmanned aerial vehicles to smuggle huge quantities of methamphetamine (locally known as ice) from Lahore to India.

    Sources said a drone could carry up to six kilograms of drugs, which would be delivered at a given location in Indian Punjab after flying across the border.

    Departmental action has already been initiated against the police officer, DIG said, adding that further proceedings would be made in the light of the inquiry report.

    The use of technology to smuggle drugs sent alarm bells ringing in ANF, evident from recent arrests made by the force.
    A subsequent probe revealed that DSP Mazhar Iqbal, who secured interim bail after a case was registered against him, was also involved in the alleged smuggling.

    The smugglers on both sides of the border were using “some means of communication to get alerts about the delivery of the drug”, the officials said.

    They added that payments against these drugs would be made in the UAE.

  • Illegal cigarettes capture 50% of market share: Official tobacco sector calls for govt help

    Illegal cigarettes capture 50% of market share: Official tobacco sector calls for govt help

    The tobacco sector that’s officially documented is urgently seeking government support to address the growing issue of smuggled and illicit cigarettes, which now make up over 50 per cent of the local market.

    During a recent briefing on “Current Tobacco Dynamics,” representatives from the Pakistan Tobacco Company (PTC) expressed concern that the market share of these illicit tobacco products could surpass 53 per cent in the next quarter of the fiscal year 2023–24.

    While a 200 per cent increase in excise duty (FED) on cigarettes was implemented, its real impact is expected to become evident in the current fiscal year. Sami Zaman, spokesperson for PTC, highlighted a 44 per cent drop in legitimate cigarette production in June, along with a 28.4 per cent overall sales decrease for the 2022–23 period.

    The implementation of the track-and-trace system has been limited to just two international manufacturers, leaving the rest of the undocumented tobacco sector largely unmonitored. Zaman stressed the need for consistent application across all local manufacturers to prevent tax evasion units from buying untaxed tobacco directly from farmers.

    Zaman also expressed concern about the government’s inability to effectively control the sale of untaxed, health-warning-free smuggled cigarettes. Currently, only multinational companies with track-and-trace systems are under scrutiny.

    According to Brecorder, smuggled cigarettes, due to their tax evasion, remain cheaper, lack mandatory graphic health warnings, and often come in appealing flavours, sometimes even in loose packs. Despite a significant 200 per cent increase in excise duty, the market continues to be flooded with untaxed, affordable cigarettes.

    Due to a shortage of raw tobacco, prices have risen. The growing illicit market is expected to have a significant impact on both legitimate industry volumes and government revenues in the upcoming quarter.

    Despite contributing Rs175 billion during the 2022–23 period (compared to a Rs180 billion target), the tobacco sector’s excise duty collections increased while volumes decreased.

  • Nearly 1,000 smartphones and high-tech gadgets seized by Customs at Faisalabad Airport

    Nearly 1,000 smartphones and high-tech gadgets seized by Customs at Faisalabad Airport

    According to reliable sources, customs officials at Faisalabad Airport recently intercepted a significant shipment of smuggled smartphones, drone cameras, and related accessories valued at millions of currency units. This operation led to the arrest of three suspected smugglers upon their arrival from Sharjah to Faisalabad.

    During the inspection of the passengers’ luggage, the customs officials discovered and seized 971 smartphones, 78 iPods, a drone camera, and gaming hardware concealed cleverly within their bags and shoppers.

    In a separate incident at Karachi’s Jinnah International Airport, the Federal Investigation Agency (FIA) apprehended a passenger named Abdul Razzaq, who had just returned from the UAE. The FIA spokesperson disclosed that the accused, Abdul Razzaq, was a wanted criminal in Punjab, specifically in connection with a murder case. Subsequently, the FIA handed over the suspect to the local police for further legal proceedings.

    Moreover, a few days prior to this incident, customs officials successfully thwarted an attempt to smuggle iPhones at Sialkot Airport. The authorities seized 30 smuggled iPhones worth nearly Rs100 million from a passenger named Adeel, who had arrived from Sharjah on flight number PK-210. Notably, the accused, Adeel, was identified as an employee of Pakistan International Airlines (PIA). Investigations revealed that he was involved in the distribution of smuggled smartphones to Karachi and Lahore.

    Additionally, the customs officials disclosed that the accused PIA flight steward, Adeel, had an accomplice named Ali Ahmed, who was also part of the smartphone smuggling operation. Both individuals were employed by PIA.

    These actions by customs officials and law enforcement agencies demonstrate their commitment to curbing smuggling activities and ensuring the safety and security of the nation.

  • Wheat prices soar in Lahore, hitting Rs5,100 per 40kg bag

    Wheat prices soar in Lahore, hitting Rs5,100 per 40kg bag

    In Lahore, the price of a 40kg bag of wheat has surged to Rs5,100, which is significantly higher than the government’s fixed rate of Rs3,900. The leader of the flour mills association has stated that the government’s rate is not being implemented in the market.

    As a result of the increase in wheat prices, the price of a 20kg bag of flour has risen to Rs2,750, as opposed to the government’s fixed rate of Rs2,316.

    The flour millers have explained that they are unable to sell the wheat at lower rates after procuring it at an exorbitant price from the open market.

    Last month, officials from the Punjab Food Department foiled an attempt to smuggle wheat and flour to Afghanistan. More than 70 containers loaded with wheat and flour were being smuggled to Afghanistan from Rawalpindi Motorway.

    During the inspection, district food authority officials seized 46 containers loaded with wheat and 16 containers of flour. The wheat and flour were being transported from Punjab to Afghanistan, despite a ban on wheat transportation from the province. The containers were sealed and 16 people were booked in connection with the incident.

  • Smuggled phones flood AJK and GB as device identification system remains unimplemented

    Smuggled phones flood AJK and GB as device identification system remains unimplemented

    According to a source in the Federal Board of Revenue (FBR), the non-implementation of the Device Identification, Registration and Blocking System (DIRBS) has led to an increase in the use of smuggled mobile phones in the Azad Jammu & Kashmir and Gilgit-Baltistan region. Unlike the rest of the country, the Special Communications Organisation (SCOM) is the main mobile phone operator in this region, and the DIRBS does not apply to its connections.

    The purpose of the DIRBS is to identify non-compliant devices operating on local mobile networks and eventually block them while registering compliant ones. Despite a halt in local manufacturing and import of mobile phones, around 100,000 mobile phones are being smuggled into the region every month.

    Industry experts have confirmed that non-duty paid mobile phones smuggled from Dubai have made their way to the region. Zeeshan Mianoor, Deputy Vice Chairman of Pakistan Mobile Phone Manufacturers Association, stated that the monthly sales of local mobile sets were around 2 million devices, with around 8-10% of them sold in the AJK and GB region.

    According to Dawn, Muhammad Ishaq Jalal, a Skardu-based journalist, explained that unregistered phones do not work in mainland Pakistan, but they operate on SCOM, and the same connection works in mainland Pakistan on the Ufone network due to the agreement between SCOM and Ufone. Jalal also noted that expensive, used smartphones are available at reasonable prices in the GB region because many of them are blocked in mainland Pakistan either because they were not registered with PTA or stolen, and their IMEI has been blocked.

    The spokesperson of the Pakistan Telecommunication Authority (PTA) stated that both the PTA and the Ministry of IT and Telecom have requested the Cabinet Division to ensure the implementation of DIRBS on SCOM. The spokesperson added that the system would be extended to the SCOM connections once the Cabinet Division approves the request. The DIRBS was introduced to protect local mobile device manufacturing by imposing duties on imports of mobile phones, as well as those brought by travellers coming from abroad. However, this system also helped to reduce mobile phone smuggling.

  • Pakistan Tobacco Company fears surge in smuggling, fake cigarette supply after tax hike

    Pakistan Tobacco Company fears surge in smuggling, fake cigarette supply after tax hike

    Pakistan Tobacco Company (PTC) has expressed serious concern over the recent mini-budget announcement, stating that new taxes on cigarettes will result in an increase in smuggling and counterfeit products in markets. Speaking to the media on Friday, PTC’s Director Legal and External Affairs, Syed Asad Shah, explained that the increase in federal excise duty (FED) and the lower minimum price set by the Federal Board of Revenue (FBR) would lead to less revenue collection from the cigarette industry.

    Shah displayed several illicit cigarette packs available in markets across the country, including some smuggled brands without health warnings, counterfeit products of local brands, and unregistered and non-tax-paid locally produced cigarettes.

    Shah projected that the share of illicit cigarettes in Pakistan would increase from the current 35 per cent to 40-50 per cent in the current year. He added that if the government did not rationalize the policy of managing the threshold price level and did not restrict illicit trade, its revenues would also decline after two years. Illicit cigarettes are sold below the minimum price because the applicable tax per pack is not paid on these products.

    The cigarette industry paid total taxes of Rs150 billion in fiscal year 2021-22, and the expected tax receipts this year would be around Rs185 billion because of the new taxation measures. According to the industry, tax contribution by PTC and Philip Morris, two multinational companies, alone will be around Rs182 billion.

    Shah pointed out that around 35 cigarette companies were running in Pakistan, making some 200 brands, but local players paid only Rs3 billion in taxes and duties. He added that many companies were not paying due taxes, which was why some were selling cigarette packs for Rs7.

    PTC officials emphasized the need for a rational increase in the minimum legal price of cigarettes. After the recent rise in FED, taxes, and duties on tier-2 cigarette packs came in at Rs101, but the minimum sale price of the same packs was Rs108.

    According to Express, the company officials demanded that the finance ministry take stringent action against the illicit cigarette trade and ensure across-the-board implementation of the FBR’s track and trace system that monitors the production and supply of cigarettes.