ISLAMABAD: Pakistan suffered a staggering annual loss of more than Rs700 billion due to illicit trade activities, ARY News reported, quoting a report released by a renowned international research organization.
Collaborating with economic research firm Prime, Director General (DG) Trace It Geoffrey Hardy unveiled the findings of the report, highlighting the significant impact of undocumented and illegal trade practices on Pakistan’s economy.
According to the report, a staggering 40 percent of Pakistan’s economy is affected by illicit activities such as smuggling and counterfeit goods, resulting in an annual loss of Rs700 billion.
Hardy pointed out that Pakistan’s high inflation rate, currently at 25 percent, serves as a lucrative incentive for smuggling operations, particularly in counterfeit agricultural and food products, posing threats to both public health and economic stability.
He said that the smuggling of fake medicines, identified as the most perilous aspect of trafficking, alongside tire smuggling, which alone accounts for an annual loss of Rs40 billion to the economy.
The report further reveals that cigarette smuggling and counterfeit manufacturing contribute to an annual loss of Rs240 billion, while tea smuggling accounts for a loss of Rs45 billion.
Moreover, an alarming statistic indicates that 60 percent of Mobil oil sold in Pakistan is smuggled and counterfeit.
Dr. Ali Salman, executive director of the economic research institute, emphasized that the proliferation of smuggling is exacerbated by the government’s increase in taxes and tariffs, creating an environment conducive to illicit trade practices.
Despite government efforts to curb smuggling, challenges persist. Dr. Ali Salman highlighted the inadequacy of customs officials, with only 400 officials deployed along the 1600 km border, further underscoring the need for enhanced measures to combat trafficking and protect Pakistan’s economy.
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