Islamabad, 7 May, 2025: A Senate Standing Committee on Commerce, led by Senator Anusha Rahman, was briefed that over 2.8 billion liters of petrol and diesel are smuggled into Pakistan from Iran each year.
The committee meeting also informed that the illegal trade resulted in a overwhelming annual revenue loss of Rs270 billion.
The committee’s briefing further disclosed that across five major business sectors, tax evasion worth Rs751 billion is going on, mainly due to the sale of smuggled and counterfeit goods in the market.
The pharmaceutical sector is affected notably, with 40 percent of medicines being found as fake or substandard, which results in tax evasion of Rs60-65 billion annually.
READ MORE: Pakistan Customs Targets Government Officers Driving Smuggled Vehicles
The tire industry also faces severe impact, with 60 percent of tires sold in Pakistan being smuggled, causing a revenue deficit Rs106 billion.
In addition, 30 percent of tea retailed in the country is smuggled, contributing to a Rs10 billion shortfall in tax revenues each year. The briefing emphasized that weak law enforcement and high duty are the key reasons for the ongoing illicit trade, urging stronger measures to prevent tax evasion and smuggling.
Last year, the law enforcement officials conducted a crackdown on Hub River Road in Karachi where they seized millions of rupees worth smuggled goods including Iranian Diesel.
READ MORE: 200 Smugglers Continue Illegal Petrol, Diesel Imports via Pak-Iran Border
According to Deputy Inspector General (DIG) Asad Raza, five individuals were arrested during the operation, and goods worth billions of rupees were confiscated from their possession.
DIG South stated that the contraband was concealed in two buses and an oil tanker, and among the seized items were cigarettes, fabric, copper, juice, and powdered milk, reflecting the variety of goods being smuggled through the region.
