The Senate Standing Committee on Commerce has revealed that Pakistan is losing a huge amount of money every year because of smuggling and counterfeit products. According to the report, over 2.8 billion liters of petrol and diesel are smuggled from Iran annually. This illegal trade causes the country a loss of nearly Rs. 270 billion in revenue.
But fuel smuggling is just one part of the problem. Five major sectors pharmaceuticals, tires, tea, electronics, and cosmetics—are also badly affected. These industries are seeing about Rs. 751 billion in tax evasion every year due to the sale of smuggled and fake products.
The situation is especially serious in the case of medicines and tires. Nearly 40% of medicines available in the market are either smuggled or not up to standard. For tires, the situation is even worse—about 60% of them are either counterfeit or illegally brought into the country.
Experts told the committee that weak law enforcement and high import taxes are the main reasons behind this widespread illegal trade. Because taxes are too high, many people prefer to bring goods into the country illegally, avoiding official checks and duties. In many cases, the authorities fail to catch or stop them.
The committee stressed the need for stronger enforcement and strict action against those involved in smuggling and selling fake products. They also recommended reviewing the current tax system to make it more balanced and fair.
If these issues are not handled quickly, Pakistan will continue to face major financial losses and risks to public health and safety. The committee urged the government to take urgent steps to protect the country’s economy and ensure that only safe, legal goods are available in the market.
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