How did MG Motors make a mess in Pakistan? Hair-raising details

ISLAMABAD: The Public Accounts Committee (PAC) has directed the Federal Board of Revenue (FBR) to probe into the embezzlement of Rs 5 billion through underwriting against MG Motors. According to news website Pro Pakistani, the FBR has already investigated the matter and closed the case, confirming that reports of tax evasion of Rs 5 billion through under-invoicing against MG Motors were false. Are However, after the new government came to power, the PAC has ordered the FBR to re-investigate the matter.

PML-N leader Khawaja Muhammad Asif has said through his Twitter account that he raised the issue in the Public Accounts Committee. In his tweet, he thanked the Chairman PAC for convening a meeting of the committee on the single point agenda at his request.

Journalist Syed Kausar Kazmi has said through his Twitter account that the import fraud of MG Motors was carried out by former Secretary to the Prime Minister Azam Khan, Member Customs Operations FBR Tariq Huda and Javed Afridi of MG Motors. In the last year, they imported 10,000 complete assembly vehicles to Pakistan. The former government forced customs officers to underwrite these vehicles.

According to the report, the customs department initially cleared 1,000 vehicles at a cost of 11 11,000 per unit through verbal instructions, while at the same time only ‘CKD kits’ of Lahore dry port type vehicles cost 16 16,000 per unit. MG Motors, responding to the issue, said that reports of underwinning against the company were baseless. Their aim is to tarnish the company’s image and target Chinese investment in Pakistan.