A storm is brewing in Pakistan’s trade and logistics sector as unverified reports allege that Gerry’s Dnata, a leading ground-handling and cargo management company, facilitated the clearance of goods worth nearly Rs.900 crore without filing proper customs declarations.
The case reportedly involves a major pharmaceutical company alongside other unnamed firms. Insiders claim that the scale of the alleged malpractice could be far larger — potentially crossing Rs.2000 crore — raising questions about oversight, accountability, and regulatory loopholes at the country’s busiest port city.
The Allegations
According to the claims circulating among trade insiders and industry whistleblowers:
- Consignments were allegedly cleared without mandatory Goods Declarations (GD).
- Pharmaceutical imports are said to have bypassed regulatory scrutiny, raising fears over safety and compliance with DRAP (Drug Regulatory Authority of Pakistan) rules.
- Gerry’s Dnata, as a cargo ground handler, allegedly issued delivery orders without verifying whether customs clearance had been duly processed.
If true, this would represent one of the largest customs evasion scandals in recent years, undermining the credibility of both private service providers and state regulators.
Possible Beneficiaries
While no official report has yet named the involved parties, speculation points toward:
- Pharma distributors looking to cut costs by avoiding duties.
- Customs agents or handlers potentially turning a blind eye to documentation gaps.
- Intermediaries exploiting the system of bonded warehouses, exemptions, or loopholes in the digital clearance process.
The insiders suggest that the loss to the national exchequer may not only be financial but also reputational, as Pakistan is already struggling to streamline trade under the Pakistan Single Window (PSW) initiative.
Oversight and Accountability Questions
Critics argue that such a large-scale clearance could not have occurred without systemic oversight failures.
- Where was customs intelligence?
- Why were post-clearance audits not triggered?
- How could a ground handling firm proceed without verifying clearance?
These questions remain unanswered, fueling suspicions of deep-rooted collusion between importers, customs officials, and private operators.
Industry Context
This is not the first time Gerry’s Dnata has been linked to controversies. In the past, the firm has faced scrutiny for allegedly facilitating the clearance of sensitive consignments without proper authorization.
Separately, Pakistani authorities have repeatedly seized smuggled medicines and misdeclared goods worth billions from Karachi and other ports. In March 2025, the FBR admitted that over 10,000 Goods Declaration forms had been tampered with to evade taxes.
The alleged Rs.900–2000 crore scandal, if proven, would eclipse previous cases in scale.
What Happens Next?
For now, the matter remains unverified, with no official statement from Customs, FBR, DRAP, or Gerry’s Dnata. But trade watchers believe that if investigations confirm the allegations, it could lead to:
- Criminal proceedings against the pharma firm(s) involved.
- Heavy penalties or license cancellation for the handling company.
- Disciplinary action against customs officers or appraisers linked to the clearance process.
- A renewed push for digital integration and real-time oversight at ports.
The Bigger Picture
At a time when Pakistan is battling economic instability, losing billions in customs revenue due to fraud or negligence is a blow the state can ill afford.
If the alleged scam is left unchecked, it risks becoming another chapter in the country’s long history of smuggling, corruption, and weak institutional oversight.
The central question remains: who will be held accountable — if anyone?
