ISLAMABAD – The Federal Tax Ombudsman (FTO) has instructed the Federal Board of Revenue (FBR) to conduct a detailed three-year audit of Gerry Dnata’s import and export operations. This decision follows a major cargo fraud scandal at Karachi’s Jinnah International Airport (JIAP).
Gerry Dnata provides ground handling and cargo services for scheduled and non-scheduled airlines across Pakistan. The FTO’s directive comes after the company received a Show Cause Notice (SCN) and its CEO was granted an opportunity for a hearing. Authorities may suspend or permanently revoke Gerry Dnata’s cargo shed license depending on the audit results.
The investigation began after an October 2, 2025 media report exposed a large-scale cargo theft and duty evasion racket. The alleged scheme involved a UAE-based cargo operator and spanned 18 months, with high-value goods illegally removed from customs custody without paying duties.
The FTO’s order also calls for a probe into the potential involvement of Customs officials. Investigators aim to determine whether airport staff assisted in the fraudulent activities. Evidence of collusion could lead to disciplinary action under FBR rules.
Reports indicate that at least six consignments of expensive electronics, including mobile phones, were removed from Gerry Dnata’s sheds since March 2024. The goods were cleared using fraudulent Goods Declarations (GDs) and reused machine numbers from previous clearances linked to fake importers.
While some suspects have been arrested and goods seized, the FTO criticized Customs for repeated failures in preventing such thefts. The Ombudsman described the ongoing misconduct as systemic dysfunction and maladministration, emphasizing that large-scale fraud would not have been possible without corruption.
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As a licensed terminal operator under the Customs Act of 1969, Gerry Dnata is legally required to follow all customs procedures. The FTO concluded that the company’s repeated failures highlight significant flaws in institutional oversight and the urgent need for corrective measures.
