Illicit trade costs Pakistan over PKR 700 bn annually: Report
Director General of Trace It, Geoffrey Hardy, unveiled the report's findings in collaboration with economic research firm Prime, shedding light on the profound impact of undocumented and illegal trade practices on Pakistan's economy.
ANI
May 08, 2024 14:06 IST
Islamabad [Pakistan], May 8 (ANI): A report released by a prominent international research organisation reveals that Pakistan faces an enormous annual loss exceeding PKR 700 billion due to illicit trade activities, as reported by ARY News.
Director General of Trace It, Geoffrey Hardy, unveiled the report's findings in collaboration with economic research firm Prime, shedding light on the profound impact of undocumented and illegal trade practices on Pakistan's economy.
According to the report, a staggering 40 per cent of Pakistan's economy is influenced by illicit activities, such as smuggling and counterfeit goods, resulting in an annual loss amounting to PKR 700 billion, according to ARY News.
Hardy emphasised Pakistan's high inflation rate, currently at 25 per cent, as a significant incentive for smuggling operations, particularly in counterfeit agricultural and food products, posing threats to public health and economic stability.
Among the alarming revelations, the report highlights the smuggling of fake medicines as the most perilous aspect of trafficking, along with tyre smuggling, which alone accounts for an annual loss of PKR 40 billion to the economy.
Cigarette smuggling and counterfeit manufacturing contribute to an annual loss of Rs 240 billion, while tea smuggling alone accounts for PKR 45 billion in losses.
Furthermore, an alarming statistic indicates that 60 per cent of Mobil oil sold in Pakistan is smuggled and counterfeit.
Ali Salman, Executive Director of the Economic Research Institute, underscored that the proliferation of smuggling is exacerbated by the government's tax and tariff increases, fostering an environment conducive to illicit trade practices.
Despite government efforts to curb smuggling, challenges persist. Ali Salman highlighted the inadequacy of customs officials, with only 400 officials deployed along the 1600 km border, emphasising the urgent need for enhanced measures to combat trafficking and safeguard Pakistan's economy, ARY News reported. (ANI)
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