Unmasking the Economic Menace: Pakistan's Struggle with Rs8 Trillion Tax Loss Due to Illicit Trade
Pakistan, a nation with a rich cultural heritage and a rapidly evolving economy, finds itself grappling with a formidable adversary - illicit trade. The Pakistan Business Council has recently sounded the alarm, revealing that the country is hemorrhaging an astonishing Rs8 trillion annually due to this clandestine activity. The scale of this issue is further magnified by estimates that illegal trade accounts for a staggering $68 billion, equivalent to 20% of the formal economy. Understanding Illicit Trade: Illicit trade encompasses a wide array of activities, including smuggling, counterfeiting, tax evasion, and other forms of underground commerce that operate outside the purview of regulatory frameworks. In the Pakistani context, this underground economy has become a formidable force, siphoning off a significant portion of the country's potential tax revenue. Root Causes of Illicit Trade: Several factors contribute to the rampant illicit trade in Pakistan, forming a complex web of
