KARACHI: A study conducted by the customs department has disclosed startling results as over 59 percent of the overall demand for products in half a dozen sector of the formal economy is being met through illegal trade of smuggled goods.
A report in Express Tribune said over half a dozen sectors of the documented economy which include auto parts, mobile phones, tea and petroleum were being fed via trade of smuggled goods.
According to the Model Customs Collectorate (MCC) Preventive in Karachi, it carried out a probe of 13 commodities vulnerable to smuggling in Pakistan for FY14 and said over 11 of them were severely influenced because of illegal trade.
The report prepared by MCC Preventive, Karachi and last updated on May 2015 reveals around 59 percent of tyre demands was reached via illegal channels and may have been met via smuggling.
And about 47 percent of the tea demand was reached via illegal means and highlighted the share of smuggled mobile phones demand was recorded at 59 percent, whilst the remaining amount was satisfied through the documented economy.
And the report from MCC Preventive, Karachi said the share of smuggled televisions in the country was 57 percent and the rest was reached via domestic production constituting 37 percent share and imports 6 percent.
Also, the share of smuggled auto parts of the overall demand was recorded at 57 percent, whilst the remainder was reached via domestic production which constitutes 18 percent share, imports 16 percent and fake 9 percent.
Roughly 10 percent demand of steel sheets is met through illicit means and 87 percent via formal channels, whilst the remainder is satisfied via domestic production.
Likewise, around 12 percent demand of vehicles is arranged via illicit means, 67 percent via local production and remainder through formal imports.
Fabric demand of 17 percent was met via smuggling, 58 percent through domestic production and the remaining 25 percent via imports.
Diesel smuggling amounted to 33 percent.
