Zulfiqar Cheema, Director General of Immigration and Passports, told a single-judge bench of the Islamabad High Court that Passports Office across the country had issued a "huge number" of blue-coloured official passports to "non-entitled government officials and ordinary persons".
Cheema alleged that "even cycle mechanics had been issued blue passports on the orders of the Interior Ministry".
He added, "However, I have now written to the ministry for cancellation of all such passports".
Due to this act, a number of countries had refused to grant visas to many Pakistani officers, he added.
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Cheema further alleged that former Interior Minister Rehman Malik had asked a Deputy Project Director to award a contract for lamination sheets used in passports to Hologram Company, and a resultant delay provided an opportunity to "mafia elements" to take bribes ranging from Rs 20,000 to Rs 25000 to get passports issued.
The court should order an inquiry against persons responsible for causing crises in the issue of passports, he said.
Rehman Malik, who is currently in London, denied the allegations levelled against him in messages posted on Twitter.
Referring to the current tender for lamination sheet awarded to a private company, Cheema said formal approval was granted on the recommendation of officials and a high-power committee headed by the Interior Secretary.
On the other hand, Reliance Company counsel Salman Akram Raja argued that authorities did not evaluate security features of samples of lamination sheets provided by US-based Security Laminates Opsec.
After hearing arguments, the court asked the contractor's counsel to appear at the next hearing on May 28.