In an international report, where it has been pointed out that illegal trade is causing a loss of 700 billion rupees to the Pakistani exchequer annually, it has also been clarified that as a result of this situation, the ability of law-abiding sectors to earn profits is ending.

  A report compiled by Jeff Hardy, hosted by a Pakistani think-tank called the Policy Research Institute of Market Economy (PRIME), can surely help Pakistan to take advantage of the golden opportunity of foreign investment worth billions of dollars.

In the review of Pakistan's economic problems, the rate of inflation has been stated at a reasonable level of 25%, which is different from our estimates. But it is not possible to ignore the fact that the abnormal inflation has had a devastating effect on the purchasing power of consumers.  The ability to buy products has been affected, partly due to illegal trade.

When commodity prices rise faster than incomes, illegal and black markets emerge.  For those who cannot afford expensive goods, a market for cheap alternatives to substandard, defective, and harmful goods emerges.  According to executive director of "Prime", there are black and gray markets worth 68 billion dollars, which are causing high taxes, tariffs, and duties.  

It should not be overlooked that proceeds from illegal trade are used for corruption, money laundering and tax evasion, while bribery and extortion are elements that harm the entire economy. Meanwhile, other experts also point to the Afghan transit trade. At times when the country is passing through worst economic crisis, the Afghan Transit Trade is causing further losses to the exchequer.

In a report, the Afghan transit trade has been identified as a major cause of unprecedented damage to our economy. According to the report, Afghan transit trade is the main reason for the existing black market in the country, as reports say that Afghan officials and traders used to involved in false declarations to Pakistan Customs while importing goods. It is good to see that previous Caretaker Govt has took serious notice of the smuggling of goods under the guise of Afghan transit trade.

It has reached an alarming level and Afghanistan's imports under transit trade have risen  by a whopping 68%, a media report says. Available figures indicate that Afghan imports, which were reported to be around four billion dollars last year, have increased increased to 6.71 billion dollars in current year, which is causing a huge losses to the national exchequer, particulary the small and medium scale industry has been badly impacted by this illegal trade. It is high time to regulate it in accordance with international laws. On the one hand, the smuggling of Iranian oil through Balochistan is having a negative impact on the country's economy, on the other hand, there is the problem of Afghan transit trade. 

According to a report submitted to the government, this is the main reason for the establishment of black market in Pakistan and a major cause of damage to the economy. Afghan authorities and businessmen misdeclare the import of goods to Pakistani customs, resulting in significant discrepancies between the reported and actual value of the goods, and later the same transit trade goods return illegally to Pakistan.  Three-fourths of the goods are exempted from customs duty. Pakistan is suffering a loss of three billion dollars annually from the illegal trade of Afghanistan. 

According to another data, Afghan imports increased by 67% under transit trade. Afghan imports, which were 4 billion dollars last year, increased to 6.71 billion dollars in 2022-23. The goods imported to Afghanistan include artificial fiber, electrical equipment, electronic equipment, tire tube, tea. These imports have recorded an increase of 35%, 72%, 80% and 59% respectively. Imports decreased significantly.  Small and medium scale industries were badly affected, a report came out a few days ago which revealed the smuggling of billions of rupees. Suggestions for solutions were also sought.  According to economic experts, domestic exports are affected by illegal trade. The government should adopt a zero tolerance policy against trafficking.

It is the need of the hour to align Afghan transit trade with international norms. Meanwhile, it is good to note that an automated digital system is being introduced in Pakistan this month to bring faster clearance of cargo ships, reduce trading costs and save movement time.  The new approach will give a boost to the transport, warehousing and freight forwarding sectors associated with the logistics sector.  Under this system, all seaports and the terminals established in them will be connected to each other under an automatic digital system, especially at the ports of Karachi, Bin Qasim and Gwadar, the clearance of cargo ships will be accelerated, which will provide extraordinary convenience to overseas traders.

The new system is part of a single window that will provide logistics-related information to relevant institutions and departments. For international trade activities, delivery of import and export goods, Pakistan is working from 8 major ports. Among them, Karachi, Mohammad Bin Qasim and especially in the future perspective, Gwadar through the CPEC project of Pakistan-China Corridor is central.  At present, Karachi Port accounts for 60% of the national commercial activities, which indicates an extraordinary pressure on it. Amidst the country's deepening economic crisis, a major development came a few months ago when a business group in Abu Dhabi announced a major investment in the sector, including the construction of terminals at ports, Karachi and Port Qasim. 

Meanwhile, despite serious efforts to make Gwadar a global trade center in the future, the pace of expansion of urban and business infrastructure there is very slow. According to the government data, foreign investment in the last financial year has decreased by 21% to just one and a half billion dollars, which needs proper attention.  It would be better to include ports in foreign investment through the National Investment Facilitation Council. In such situations when the rate of inflation has reached the highest level. Billing has made the life of a common man miserable. Trillions of rupees are being lost due to smuggling. Electricity theft, dollar speculation, sugar, petroleum smuggling, hoarding and illegal profiteering have hollowed out the country's economy.  Apart from this, a crackdown was started to stop the smuggling of dollars, sugar and agricultural commodities etc., in which there were big eye-opening revelations. Surprisingly,  government officials were also found to be involved in the smuggling.

After currency and oil, now a sensitive agency's report on smuggling of sugar, fertilizer and wheat has also been submitted to the Prime Minister's Secretariat. It has also been revealed that government officials are providing support to smugglers and hoarders.  According to the report, apart from 592 wheat hoarders and 26 smugglers, 259 government officials have been identified. Last year, the sensitive agency had sent 417 reports to the relevant departments, on the basis