Smuggling on Economy.

The menace of smuggling has social, moral, and economic repercussions with a greater debilitating impact on the economy. It undermines the local industry of the counAtry in a negative way, leading to tax evasion and loss of revenue to the government besides promoting crimes. Smuggling is a universal phenomenon. According to the World Economic Forum smuggling creates an annual drain on the global economy to the tune of $2.2 trillion.

As far as Pakistan is concerned, according to a study jointly carried out by economists of Harvard University and the Ministry of Commerce in 2020, smuggled goods have penetrated several sectors of Pakistan's economy accounting for $3.3 billion. The reAport revealed that a staggering 74% of cell phones sold in PakAistan were smuggled into the country. When it came to vehiAcles, 53% of diesel, 43% of engine oil, 40% of tyres and 16% of auto parts sold in the country were smuggled. Similarly, a significant chunk of textiles : 300,000 tonnes to be precise : were also smuggled into Pakistan. Pakistan produced 2.7 milAlion tonnes of textile goods annually and legally imported anAother 2 million tonnes, which it exported leaving a gap of 1.7 million tonnes in its local demand which was also a factor in the smuggling of textile goods.

Most of the smuggling of these goods is carried out through borders with Iran and Afghanistan. The smuggling of Iranian diesel into Pakistan, according to the relevant quarters, has increased by 35 per cent causing a decrease of 40 per cent in domestic sales. The usage of smuggled diesel is causing a monthly loss of Rs.10.2 billion. The result is that some local refineries are operating far below their capacity.

The Afghan transit route is also a major source of smugAgling goods, narcotics and arms into Pakistan which has alAready spurred the incidents of terrorism and attacks on our security installations. Not only the commodities are smuggled into Pakistan, but sugar, flour and dollars are smuggled into Afghanistan from Pakistan

The painful aspect of the problem is that government funcAtionaries are supposed to check smuggling and some security personnel manning the border check posts are also reportedly involved in facilitating this anti: Pakistan activity and the monAey earned is shared with the high: ups also. Some political eleAments are either directly involved or are guilty of backing this clandestine business. It is a painful reality that this filthy busiAness has been going on...