Islamabad: The Directorate of Post Clearance Audit (Central), Lahore, has arrested an individual accused of participating in a significant case of misuse of the Export Facilitation Scheme (EFS), allegedly resulting in a loss of Rs. 116.5 million to the national exchequer.

According to Press Information Department, the Directorate acted upon credible information revealing that M/s Idrees Textile Mills Limited in Nankana Sahib was exploiting the EFS by illegally selling duty-free imported cotton in the local market, violating the Customs Act, 1969, and the conditions of the Export Facilitation Scheme. An audit and physical stock verification at the company’s premises uncovered a substantial shortage of imported cotton, which was cleared under the scheme. It was found that 544,212 kilograms of imported cotton, valued at Rs. 471.186 million, were missing, with a duty and tax value of Rs. 116.506 million.

Following the audit, an FIR was filed against the owners and directors of M/s Idrees Textile Mills Limited and others involved, for offenses including fiscal fraud, unlawful goods removal, misdeclaration, and evasion of duty and taxes, in accordance with the Customs Act, 1969. On June 2, 2026, the Directorate’s staff conducted a raid at the factory and arrested Kashif Imran, accused of aiding in the illegal disposal of the duty-free imported goods under the EFS.

This enforcement action is a significant step by the Directorate of Post Clearance Audit (Central), Lahore, marking one of the first criminal proceedings since the delegation of powers for FIR registration and criminal proceedings initiation under the amended EFS framework introduced through SRO 1655(I)/2025. The Federal Board of Revenue continues to emphasize its commitment to safeguarding government revenue, supporting legitimate business activities, ensuring compliance with trade laws, and taking decisive legal action against revenue fraud and trade facilitation scheme misuse.