Islamabad – ACT Alliance Pakistan has lauded the Government of Pakistan and the Federal Board of Revenue (FBR) for launching a forceful nationwide crackdown against illegal trade, highlighted by a series of impactful raids in major cities, including Karachi and Quetta. Over the past several weeks, authorities have recovered smuggled and counterfeit goods valued at billions of rupees.
This crackdown, coordinated by the FBR and carried out by various law enforcement agencies, has led to the seizure of significant quantities of untaxed and fake products, sending a strong signal that tax evasion and economic sabotage will no longer be tolerated.
“Pakistan’s economy has suffered at the hands of illegal trade for too long,” said Mubashir Akram, National Convenor of ACT Alliance Pakistan, while addressing a roundtable in Islamabad with media and trade representatives. “The recent raids demonstrate the state’s capacity to take decisive action. We commend the Government and FBR for showing leadership and determination. These efforts must continue and expand in scale and scope.”
Among the recovered goods, illegal cigarettes ranked highest in financial value, spotlighting the persistent threat of the illicit tobacco trade. Industry reports and tax intelligence consistently show that the illegal cigarette sector alone evades more than Rs. 300 billion in taxes every year, severely undermining Pakistan’s formal economy and draining revenue needed for critical sectors like health, education, and infrastructure.
“The scale of the cigarette sector’s tax evasion is alarming. We urge the Government to pay special attention to this issue,” added Akram. “The formal, tax-compliant tobacco and other industries are shrinking while untaxed brands flourish. The state must act decisively to enforce track-and-trace mechanisms and clamp down on unauthorized manufacturers.”
According to estimates from 2024, Pakistan faces an illegal trade volume of approximately $68 billion annually — roughly Rs. 19,040 billion — accounting for a major portion of the economy. Experts warn that if enforcement is not institutionalized, the problem could worsen, deepening informality, deterring investment, and limiting the government’s fiscal capacity.
The latest operations also uncovered large stocks of smuggled tea, unregistered pharmaceuticals, and untaxed beverages, which not only bypass government revenues but also pose serious risks to consumer health and safety. These often-overlooked sectors collectively represent trillions of rupees in lost taxes and must be brought into the enforcement net.
ACT Alliance emphasized the need for continuous institutional reforms, permanent enforcement frameworks, and strong federal-provincial cooperation, supported by timely prosecutions and regular public reporting, to sustain the current momentum.
“These raids are a turning point, but only if they evolve into policy,” concluded Mubashir Akram. “Illegal trade must no longer be treated as a peripheral issue. It is a core economic challenge, and addressing it is central to Pakistan’s financial sovereignty and national development.”
Founded in 2016, ACT Alliance Pakistan is a civil society initiative working to combat illegal economic practices. It partners with business groups, media organizations, academia, and policymakers to raise awareness, strengthen institutions, and advocate for rigorous action against tax evasion, smuggling, counterfeiting, and related crimes.
