A detailed analysis by the Intelligence Bureau (IB) on smuggling, tax evasion, drug trafficking, illegal currency transactions, and the exploitation of Afghan transit commerce demonstrates how various mafias are wreaking havoc on the country’s economy.
The report of IB to the government also underlines what the agency is doing to combat economic terrorism in Pakistan.
IB Report Submitted To The Government
According to the report, the illegal supply of Iranian POL products alone costs the national exchequer at least Rs. 225 billion each year.
Smuggled Iranian oil is often sold at illicit roadside gas stations, but it has recently made its way to regular gas stations across the country.
According to the report, IB’s exhaustive anti-smuggling activities resulted in the identification of 76 transporters and 29 smugglers and facilitators involved in the smuggling of Iranian oil.
According to the research, 995 unauthorized and unregistered gas pumps were also discovered around the country as being involved in the sale and acquisition of smuggled Iranian oil.
Depreciation of The Pakistani Currency
Concerning the massive depreciation of the Pakistan rupee, the report states that stock market volatility and the imposition of capital gains taxes in real estate and capital markets resulted in investors with black money diverting their capital to foreign currencies in order to capitalize on the weak economic fundamentals-induced exchange rate depreciation.
Additionally, the heroin trade, currency smuggling from Pakistan to Afghanistan, and hawala/hundi earnings cover Afghanistan’s $4 billion yearly trade volume imbalance.
The IB identified 122 currency smugglers and 40 exchange companies engaging in currency market manipulation in order to combat currency smugglers and forex market manipulators.
With drug use on the rise and some drug dealers even making their way into educational institutions in urban areas.
Drugs and Mafias Network Identified
In addition to amassing dirty money by selling their product in the international market, the IB has identified 717 drug dealers across Pakistan and 22 transnational drug networks operating across various Middle Eastern and European countries. This includes a notorious Nigerian organization based in Islamabad.
Tobacco is one of Pakistan’s top five most tax-evading industries, accounting for around Rs. 240 billion in yearly tax evasion.
Smuggling increased after the application of high taxes on Tier I and Tier II cigarettes in March 2023. The IB took note of the situation and initiated operations against people involved in this illicit conduct.
The IB identified 62 cigarette smugglers, investigated tobacco smuggling routes, and discovered 40 godowns used for illicit cigarette storage.
FED Evasion By Tobacco Companies
This includes three large illegal counterfeit cigarette manufacturing operations and the recovery of 1.03 million kg non-duty paid tobacco in a single operation from an undeclared godown in district Swabi, KP, totaling Rs. 2.645 billion in FED evasion.
According to the inquiry, the majority of tea imported under the Afghan Transit Trade Agreement (ATTA) is smuggled back into Pakistan via reverse freight.
The IB has provided the authorities with information on 63 significant tea smugglers and 29 smuggled tea storage facilities.
To read our blog on “Pak’s cash economy sees dramatic dip of Rs. 700 bn in FY 24,” click here.
