IHC Slams Customs Over Missing Gold, Issues Show-Cause Notice
ISLAMABAD: The Islamabad High Court (IHC) has expressed dissatisfaction with an offer to pay Rs4.8 million to a petitioner in lieu of the missing gold bars and issued a show-cause notice to the customs collector in a contempt of court case, seeking a response within two weeks.
A division bench comprising Justice Sardar Ejaz Ishaq Khan and Justice Arbab Muhammad Tahir issued the written order after hearing a contempt petition over the failure to comply with its direction to return gold bars seized after being recovered from a passenger’s bag.
The contempt petition was filed by a citizen, Waqarun Nisa, over the alleged non-compliance with the court’s order.
Why the court rejected the cash offer for the missing gold bars
According to the written order, the petitioner’s counsel submitted that the court had ordered the return of the gold bars — not payment of money in their place. The counsel also argued that the Rs4.8 million offered had been calculated using gold prices from 2023 rather than the prevailing market rate.
The court was informed that the gold bars had been handed over to the State Bank of Pakistan and could not be retrieved. That explanation did not satisfy the bench.
The IHC customs gold bars dispute, in other words, is not just about missing property. It is about who bears the loss when the state disposes of seized valuables and then cannot produce them.
What Section 169(4) says — and does not say
Customs authorities told the court they had acted under Section 169(4) of the Customs Act, which deals with the sale of confiscated goods and the safekeeping of the proceeds.
The court observed, however, that the provision does not mention handing over confiscated goods to the State Bank and subsequently declaring them irretrievable. The judges said no satisfactory explanation had been provided as to why the taxpayer should bear the loss arising from the difference in the value of the gold bars.
The order puts the customs collector personally on notice: respond within two weeks or face contempt proceedings.
A wider accountability backdrop
The case lands amid a broader push for accountability inside the tax machinery. The government has suspended senior FBR officers in recent weeks, and the prime minister has warned the tax authority against corruption. Against that backdrop, a court finding that customs cannot account for seized gold, and offered a 2023 valuation for it, is likely to draw close attention.
The court adjourned the hearing until November 2, when the collector’s response will be examined.
FAQs
What did the IHC order in the gold bars case?
The court issued a show-cause notice to the customs collector, seeking a response within two weeks over the failure to return seized gold bars.
Why was the Rs4.8 million offer rejected?
The petitioner’s counsel argued the court had ordered the return of the bars, not cash — and that the amount was calculated at 2023 gold prices, not current rates.
Where are the gold bars?
Customs told the court the bars were handed to the State Bank of Pakistan and could not be retrieved.
When is the next hearing?
The hearing was adjourned until November 2.
