Latest news with #BehtareenPakistan
Business Recorder
06-06-2025
- Business
- Business Recorder
Illicit trade, smuggling: MoC says it doesn't maintain any related data
ISLAMABAD: The Ministry of Commerce (MoC) said on Thursday that it has no role in dealing with illicit (informal) trade and smuggling, nor does it maintain any related data, suggesting a 'Whole-of-Government' approach to address the issue comprehensively. This proposal was put forward by Additional Secretary (Trade Policy), Salman Mufti, during a meeting of the Sub-Committee of the Senate Standing Committee on Commerce, chaired by Senator Sarmad Ali. Senators Faisal Saleem Rahman and Zeeshan Khan Zada also attended the meeting. The sub-committee convened to assess the validity of claims made by the economic think tank PRIME and, if substantiated, to propose sustainable solutions. Pakistan loses Rs750bn tax revenue to illicit trade, smuggling yearly: report PRIME, which includes retired FBR officials among its members, claimed that illicit trade of five items in Pakistan accounts for 56% of total trade, while formal (legal) trade represents only 44%. According to their estimates, the total value of illegal trade is Rs 750 billion annually, including Rs 300 billion in tobacco, Rs 60–65 billion in pharmaceuticals, Rs 106 billion in tyres and lubricants, Rs 270 billion in petrol/diesel, and Rs 10 billion in tea. PRIME also referenced a claim by a member of the Competition Commission of Pakistan (CCP), a former FBR officer with experience in Customs Intelligence, who estimated the volume of illicit trade at $16 billion annually. These figures, particularly the Rs 300 billion attributed to the tobacco sector, raised concerns among committee members, who questioned their accuracy. The Executive Director of PRIME, however, distanced himself from full responsibility for the data, noting that the figures were sourced from various surveys and United Nations reports. Committee members from Khyber Pakhtunkhwa (KP) argued that survey-based data is often perception-driven and lacks concrete evidence. 'The figures related to the tobacco sector appear exaggerated. If they are accurate, then action must be taken against the officials of the relevant agencies for failing to curb this menace,' said Senator Faisal Saleem Rahman, who also chairs the Senate Standing Committee on Interior. He referred to the ongoing national campaign 'Behtareen Pakistan,' which also cites the Rs 300 billion figure for illegal tobacco trade. He warned that if the figure is proven incorrect, PRIME should retract its report, which has been used by major cigarette manufacturers to justify the campaign. 'As someone from KP — where districts like Swabi, Mardan, and Charsadda are major tobacco-growing areas—it is my responsibility to safeguard the rights of our farmers. As Chairman of the Interior Committee, I must also uphold the integrity of law enforcement agencies,' he added. Senator Zeeshan Khan Zada supported his colleague, recommending that the reported financial loss figures be independently verified. He called for a joint meeting of all stakeholders—both public and private—to hear diverse viewpoints and reach a well-informed conclusion. Senator Sarmad Ali suggested inviting representatives from Pakistan Tobacco Company and Philip Morris to the next meeting, along with local cigarette manufacturers, tobacco growers, FBR officials, and law enforcement agencies, to provide a platform for all stakeholders to present their perspectives. The committee also plans to hold a separate meeting focusing on the pharmaceutical sector to investigate the causes of illicit trade and its impact on national revenue. Copyright Business Recorder, 2025
Express Tribune
01-05-2025
- Business
- Express Tribune
Over Rs300b lost annually to illicit cigarette trade
Listen to article In a recent episode of The Express Tribune Podcast, in collaboration with #BehtareenPakistan, experts warned that Pakistan loses more than Rs300 billion annually due to the unchecked trade of illicit cigarettes. The conversation highlighted how tax evasion, weak enforcement of the Track and Trace system, and regulatory loopholes are crippling both public revenue and health safeguards. Speaking on the podcast, CEO of the Institute for Public Opinion Research (IPOR), Junaid Iqbal, said, 'This is not just a health issue—it's an economic crisis. When more than 40% of the cigarette market goes untaxed, the state loses the ability to fund vital services. Smugglers are filling the gap while legitimate businesses suffer.' Panelists revealed that illegal cigarette manufacturers are exploiting the system by avoiding the Federal Excise Duty and producing below the legal price threshold. These untaxed products are then sold cheaply, undercutting lawful manufacturers and contributing to a shadow economy that thrives on regulatory inaction. The podcast also explored the broader impacts of the illicit trade. Experts emphasised that this is not simply a revenue issue—it also has dire implications for public health. Consumers of illegal cigarettes are often exposed to unregulated, potentially more harmful products. In response to these challenges, the panel advocated for the urgent implementation of a fully functional track-and-trace system to digitally monitor cigarette production and distribution. They also called for tougher penalties for violators and more transparent oversight by tax authorities. Iqbal stressed, 'There needs to be a serious political will to act. The solution is not just about enforcement—it's about protecting Pakistan's economy from systemic exploitation.' The podcast concluded with a consensus that only a coordinated approach—combining technology, regulation, and awareness—can dismantle the illegal trade and reclaim lost revenue for the nation.
