ACT Alliance Lauds FBR For Crackdown On Illegal Trade

ACT Alliance Pakistan has extended strong appreciation to the Government of Pakistan and the Federal Board of Revenue (FBR) for their renewed and resolute campaign against the illegal economy, marked by a series of highly effective raids on smuggled and counterfeit goods across major cities, including Karachi and Quetta

ISLAMABAD, (UrduPoint / Pakistan Point News - 28th Apr, 2025) ACT Alliance Pakistan has extended strong appreciation to the Government of Pakistan and the Federal board of Revenue (FBR) for their renewed and resolute campaign against the illegal economy, marked by a series of highly effective raids on smuggled and counterfeit goods across major cities, including Karachi and Quetta.

These actions have led to the recovery of illegal products worth billions of rupees over the past several weeks, said a press release.

The crackdown, executed by law enforcement agencies under the coordination of the FBR, has resulted in the seizure of large volumes of untaxed and counterfeit items, clearly indicating 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 volume, underlining the persistent threat posed by the illicit tobacco trade. Industry assessments and tax intelligence consistently estimate that the illegal cigarette industry alone evades over Rs. 300 billion in taxes annually, weakening the formal economy and diverting critical revenue from health, education, and infrastructure development.

"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 2024 estimates, Pakistan suffers from an illegal trade volume of approximately $68 billion annually, equivalent to nearly Rs. 19,040 billion. This figure represents a staggering share of the economy and is feared to rise further if enforcement is not institutionalized as a core element of economic recovery mechanisms. Continued inaction risks entrenching informal markets, weakening investor confidence, and limiting the state's fiscal space.

The recent operations also uncovered large quantities of smuggled tea, unregistered pharmaceutical products, and beverages that not only evade taxes but also pose risks to consumer health and safety. While often overlooked, these sectors collectively represent trillions in lost tax revenue and must be included in broader enforcement strategies.

ACT Alliance called for institutional continuity and sustained political commitment to end the country's illegal trade ecosystem. A cross-agency framework with strong federal-provincial coordination, backed by timely prosecutions and regular public reporting, is critical to maintain 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."

ACT Alliance is a civil society initiative established in 2016 to combat illegal economic practices nationwide. It works closely with business organizations, media, academia, and policy stakeholders to raise awareness, build institutional understanding, and advocate for stronger enforcement against illegal trade, tax evasion, smuggling, and counterfeiting.