ISLAMABAD – A complaint addressed to top state functionaries, including the Prime Minister, Chief Justice, Chief of Army Staff, DG ISI, DG MI, NAB Chairman, Interior Minister and Chairman FBR, has alleged the existence of a mega smuggling racket involving diplomats posted in Pakistan with the alleged connivance of officials in the Ministry of Foreign Affairs’ Protocol Section-IV.
According to the complaint, diplomats from several embassies have been misusing duty-free exemptions granted under diplomatic privileges to import liquor, food items and cosmetics on a large scale. These exemptions are reportedly sold to known smugglers, including Dr. Tahir, Saleem & Sons, Ashraf Kalia and Basil Afandi of Ocean Freight. After acquiring exemption certificates, the smugglers allegedly clear consignments at Karachi ports instead of Islamabad or Lahore dry ports, thereby evading taxes and causing billions of rupees in losses to the national exchequer. The letter further claims that certain embassies may even be involved in importing weapons for terrorist networks.
The complaint, submitted by Malik Yousaf of Islamabad, has called for urgent action to curb the practices. It recommends the immediate replacement of the staff of MOFA’s Protocol Section-IV, mandatory verification of all duty-free exemption certificates, and the use of AI-driven scanning systems and non-intrusive inspection tools at ports to detect anomalies in diplomatic consignments. It also proposes the introduction of a digital pre-shipment declaration system linked to MOFA, FBR, FIA and ISI for advance submission and verification of cargo manifests.
For enhanced oversight, the complaint suggests intelligence-led random audits of embassies deemed “high-risk” based on trade volumes and past incidents, along with annual audits of diplomatic import and export records by a joint MOFA-FBR task force. On the legal front, it recommends amending the Customs Act of 1969 and the Prevention of Smuggling of Migrants Act of 2018 to increase penalties up to Rs90 million and allow asset freezes. It also advocates the creation of specialized anti-smuggling squads at Karachi ports, trained with UNODC support, to intercept suspicious consignments.
Financial loopholes have also been highlighted, with the complaint urging that diplomats should make payments for imports either from their personal or embassy accounts, or through letters of credit from scheduled banks, to curb the use of Hawala and Hundi channels. It further recommends that all diplomatic containers arriving at Karachi and Lahore be sealed with FBR-approved RFID trackers, and moved under supervision to dry ports in Islamabad and Lahore before being delivered to respective embassies.
Finally, the complaint has demanded a special FIA-ISI audit of Protocol Section-IV and an investigation into the assets of all smugglers and officials allegedly involved. While identifying the current Chief Protocol Officer, Mr. Tipu, as an “honest and upright officer,” it calls for accountability of others accused of abetting the scam.
The allegations, if substantiated, would constitute one of the most serious cases of misuse of diplomatic immunity in recent years, with far-reaching implications for Pakistan’s fiscal security and international obligations.
