The consensus among the representatives underscored the detrimental impact of these activities on legitimate businesses and the national economy.
Islamabad: A groundbreaking meeting convened by the ACT Alliance (Action to Counter Illicit Trade) united representatives from 17 civil society organizations across Pakistan, signaling a robust collective effort to address the pressing issues of tax evasion and illicit trading practices.
The session, spearheaded by ACT Alliance’s Chief Executive, Mubashir Akram, shed light on the alarming scale of tax evasion and illicit trade within Pakistan, particularly in sectors such as tires, lubricants, cigarettes, tea, real estate, and pharmaceuticals.
Highlighting the staggering financial losses incurred by Pakistan due to these illicit activities, Akram emphasized the urgent need for immediate intervention. According to recent reports, tax evasion alone drains approximately Rs5.8 trillion annually from Pakistan’s economy, with an additional Rs1 trillion lost due to illicit trading practices.
The consensus among the representatives underscored the detrimental impact of these activities on legitimate businesses and the national economy, prompting a call for comprehensive action.
Established in October 2016, the ACT Alliance has been instrumental in combating illicit trade in Pakistan, aiming to cut financial losses by at least 50 percent. The Alliance’s mission aligns with addressing key economic challenges, including smuggling, counterfeiting, and tax evasion.
During the meeting, the ACT Alliance urged the government to take decisive action against illicit trade and tax evasion perpetrators, calling for a parliamentary probe to facilitate consistent state-backed interventions. Additionally, the Alliance stressed the importance of developing a robust regulatory framework, raising public awareness, and fostering international cooperation to effectively combat these detrimental activities.
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A notable concern raised during the discussions was the prevalence of illegal cigarette manufacturing, which incurs an annual loss of over Rs300 billion. This illicit market not only distorts competition but also deprives the government of crucial funds needed for development and public services.
The collective resolve demonstrated by civil society organizations highlights a united front against the scourge of illicit trade, emphasizing the imperative for government, business, and civil society collaboration in crafting a comprehensive strategy to safeguard Pakistan’s economic integrity and future prosperity.
