ACT Alliance Applauds Government’s Crackdown on Illegal Trade and Tax Evasion

ISLAMABAD: ACT Alliance Pakistan has commended the Federal Government’s determined efforts to combat illegal trade and strengthen tax enforcement following the release of a new report by the Policy Research Institute of Market Economy (PRIME), which estimates that Pakistan suffers an annual revenue loss of Rs3.4 trillion due to illicit economic activities.

Speaking on behalf of ACT Alliance, National Convenor Mubashir Akram praised the government’s enforcement operations across various regions, despite significant fiscal and infrastructural challenges.

“The government deserves recognition for its ongoing efforts. From Quetta to Karachi, enforcement agencies have intercepted large consignments of smuggled goods. These actions are essential, especially when the economic damage runs into trillions annually,” said Akram.

The PRIME report, titled Combatting Illicit Trade in Pakistan, highlights several key sources of revenue loss:

• Rs1 trillion due to misuse of the Afghan Transit Trade

• Rs300 billion from tobacco smuggling

• Rs270 billion from petroleum

• Rs106 billion from tires

• Rs65 billion from counterfeit medicines

• Over Rs10 billion from smuggled tea

“This is not just a revenue issue—it’s about economic sovereignty,” Akram stated. “Illegal trade undermines legitimate businesses, erodes investor trust, and weakens our capacity to finance public services.”

The report also identified systemic issues hampering enforcement, including poor implementation of Track and Trace Systems (TTS), outdated customs infrastructure, weak inter-agency coordination, and porous borders. A referenced study by the Institute of Public Opinion and Research revealed that only 19 out of 264 cigarette brands were TTS-compliant, leaving a significant share of the market untaxed.

Akram emphasized the need for smarter, tech-driven enforcement mechanisms. “Risk profiling, automated scanning, and real-time data sharing should not remain pilot projects—they must become standard practices. Pakistan’s enforcement architecture must evolve to meet the scale of the threat.”

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Calling illegal trade a “threat to lawful enterprise,” ACT Alliance stressed the importance of sustained, coordinated action. “Every rupee recovered is a step toward economic justice,” Akram concluded. “We urge the Federal Board of Revenue, Ministry of Interior, and all enforcement agencies to maintain momentum. The nation cannot afford a rollback in this fight.”