The Ministry of Commerce (MoC) has stated that it does not handle or maintain data related to smuggling and illegal trade in Pakistan. During a Senate sub-committee meeting, the ministry instead recommended a “Whole-of-Government” approach to effectively tackle the issue, emphasizing that it requires collaboration across multiple government departments.
Additional Secretary for Trade Policy, Salman Mufti, made this clarification while responding to claims made by the economic think tank PRIME. The meeting, chaired by Senator Sarmad Ali, also included Senators Faisal Saleem Rahman and Zeeshan Khan Zada. It was held to assess the accuracy of PRIME’s data and explore possible policy actions.
According to PRIME’s report, 56% of Pakistan’s trade is illicit, with a total estimated value of Rs 750 billion annually. The report highlighted Rs 300 billion in tobacco-related trade, Rs 270 billion in petroleum products, and billions more in sectors like pharmaceuticals, tyres, and tea. Some estimates, including those from a former Customs Intelligence officer, suggested the figure could be as high as $16 billion.
Senator Faisal Saleem Rahman raised doubts over the reported tobacco figures, labeling them “exaggerated” and stressing the need for accountability if the data proved accurate. Senator Zeeshan Khan Zada supported the call for independent verification, proposing that all stakeholders—both public and private—be invited for a joint review session.
To ensure a balanced discussion, Senator Sarmad Ali recommended involving representatives from key tobacco firms, local manufacturers, FBR, and law enforcement agencies in future meetings. The committee also plans a separate session focused on the pharmaceutical sector to examine the root causes and economic impact of illegal trade.
By pushing for a unified and transparent approach, the committee aims to address the damaging effects of illicit trade on Pakistan’s formal economy and boost national revenue through coordinated efforts.