The report, submitted to the government by the IB, outlines the extent of economic damage caused by various criminal enterprises and underscores the IB’s efforts to combat these economic threats.
One significant aspect is the illegal supply of Iranian petroleum, which alone leads to an annual loss of at least Rs 225 billion to the national exchequer. Smuggled Iranian oil is distributed through illegal roadside petrol outlets and, increasingly, through regular petrol pumps across the country. The report details anti-smuggling efforts by the IB, which led to the identification of 76 transporters, 29 smugglers, and 995 illegal and unlicensed petrol pumps involved in the sale and purchase of smuggled Iranian oil.
The devaluation of the Pakistani rupee is also addressed in the report, citing stock market volatility and capital gain taxes in real estate and capital markets as factors driving investors with black money to divert their capital towards foreign currencies to take advantage of the devaluation.
The report highlights that Afghanistan’s annual trade volume gap of USD 4 billion is filled through drug trade, currency smuggling from Pakistan to Afghanistan, and hawala/hundi transactions. The IB identified 122 currency smugglers and 40 exchange companies involved in currency market manipulation.
The rise in drug use is a growing concern, with drug dealers infiltrating educational institutions in urban areas. The IB identified 717 drug dealers across Pakistan and 22 transnational drug networks operating across various countries, including a notorious Nigerian group in Islamabad.
Tobacco is identified as one of the top five tax-evading sectors in Pakistan’s economy, with annual tax evasion of approximately Rs 240 billion. Heavy taxes on cigarettes in March 2023 led to an increase in smuggling, prompting IB operations against those involved.
The report also covers the smuggling of tea imported under the Afghan Transit Trade Agreement (ATTA), the rampant tire smuggling that meets 49% of the annual demand, and sugar hoarding and smuggling to Afghanistan. Operations against sugar hoarding and smuggling resulted in the recovery of 93,182 MT of sugar valued at Rs 13 billion, with 109 sugar smugglers and 14 sugar mills identified.
Overall, the report highlights the urgent need to address these economic challenges and criminal activities to safeguard Pakistan’s economy.
