The Federal Investigation Agency (FIA) has registered a case against a petroleum importer and a Customs-licensed bonded fuel terminal at Port Qasim, accusing them of diverting more than 32,000 metric tonnes of tax-unpaid fuel into the black market through the main cross-country pipeline.
The FIA’s Corporate Crime Circle Karachi filed a First Information Report (FIR), naming seven individuals including chief executives and two companies as accused. They face charges under the Customs Act, sections of the Pakistan Penal Code relating to fraud and forgery, and the Prevention of Corruption Act.
The FIR alleges the accused conspired to remove and sell imported petroleum products before paying the customs duties, taxes and levies required by law.
The scale of the alleged scheme became apparent during a physical inspection on June 22, when officials found just 7,039.7 metric tonnes of bonded gasoline at the storage terminal of the company in Mehmoodkot, Muzaffargarh against customs and pipeline records indicating more than 39,000 metric tonnes should have been present.
The shortfall of approximately 32,081 metric tonnes exceeded the entire licensed storage capacity of the terminal.
The fuel had been transported from Port Qasim to Mehmoodkot through the pipeline of another oil company while officially remaining under bond, meaning it could not legally be sold, removed or consumed until import duties were cleared through a separate customs filing. Investigators allege that filing was never made for the missing volume.
A similar pattern is alleged to have occurred earlier in the year at the Port Qasim terminal itself, where the company is accused of selling approximately 4,744 metric tonnes of bonded high-octane fuel without submitting the required customs paperwork. Investigators say this was corroborated by data extracted from a terminal manager’s laptop.
The FIR further accuses the terminal’s Port Qasim manager of obstructing a joint inspection by refusing to provide stock records or calibration data and declining, on the company’s instructions, to sign an official stock document.
Investigators are also examining whether officials at customs offices in Port Qasim, Faisalabad and Lahore, as well as at the Oil and Gas Regulatory Authority (OGRA), may have facilitated the alleged scheme. The case has been forwarded to two special courts in Karachi, and an FIA assistant director has been assigned to lead the investigation.
GO Pakistan, in response to a request for comment, said the company continues to clear its statutory obligations within applicable payment cycles and, per its own records, remains current on all tax and levy liabilities. The company said it is extending full cooperation to the relevant authorities and will continue to engage with all stakeholders transparently.
“GO remains committed to the highest standards of integrity, governance and compliance, while continuing to ensure uninterrupted supply to its customers,” a spokesperson said.
