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.
The report, unveiled on Monday by Geoffrey Hardy, Director General of Trace It, in collaboration with the economic research firm Prime, highlights the profound impact of undocumented and illegal trade practices on Pakistan’s struggling economy.
According to the findings, a whopping 40 percent of Pakistan’s economy is influenced by illicit activities such as smuggling and counterfeit products, resulting in an annual loss amounting to over 700 billion Pakistani rupees (approximately $3.2 billion).
Hardy emphasized that Pakistan’s high inflation rate, currently at 25 percent, serves as a significant incentive for smuggling operations, particularly in counterfeit agricultural and food products, posing severe threats to public health and economic stability.
Among the alarming revelations, the report identifies the smuggling of fake medicines as the most perilous aspect of trafficking, alongside tyre smuggling, which alone accounts for an annual loss of 40 billion rupees to the economy.
Cigarette smuggling and counterfeit manufacturing contribute to an annual loss of 240 billion rupees, while tea smuggling alone accounts for 45 billion rupees in losses, the report stated.
Furthermore, an alarming statistic indicates that 60 percent of Mobil oil sold in Pakistan is smuggled and counterfeit, reflecting the widespread nature of the problem.
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 due to limited resources and personnel. Salman highlighted the inadequacy of customs officials, with only 400 officials deployed along the 1,600-kilometer border, emphasizing the urgent need for enhanced measures to combat trafficking and safeguard Pakistan’s economy.
(Inputs from ANI)