A Senate Standing Committee on Commerce, led by Senator Anusha Rahman, was informed that over 2.8 billion liters of petrol and diesel are smuggled into Pakistan from Iran each year, leading to significant financial losses. According to the briefing, this illicit trade results in an annual revenue loss of Rs270 billion.
The committee also highlighted widespread tax evasion in five major business sectors, primarily caused by the sale of smuggled and counterfeit goods. Among the sectors most affected, the pharmaceutical industry stands out, with approximately 40% of medicines identified as counterfeit or substandard. This results in a tax loss of Rs60-65 billion annually.
The tire industry is another major victim, with 60% of tires sold in Pakistan being smuggled, which leads to a Rs106 billion revenue shortfall. Furthermore, around 30% of the tea sold in Pakistan is smuggled, causing an annual loss of Rs10 billion.
The committee pointed out that weak enforcement and high duty tariffs are major factors contributing to the persistence of smuggling and tax evasion, urging the government to take stronger action to combat this issue.
In related news, last year, law enforcement authorities conducted a major crackdown at Hub River Road in Karachi, seizing smuggled goods worth millions. Deputy Inspector General (DIG) Asad Raza reported that five individuals were arrested in connection with the illicit trade, and the confiscated items, which included cigarettes, cloth, copper, juice, and dry milk, were found hidden in two buses and an oil tanker, demonstrating the diverse range of goods trafficked through the area.
