Auto parts smuggling causes over Rs 21 billion loss to exchequer

Pakistan is a safe haven for smugglers and a well protected depository for the dumping of smuggled goods from Afghanistan under the garb of Afghan Transit Trade (ATT). According to traders and manufacturers, unprecedented increase in the smuggling of auto parts and accessories is not only severely affecting the business of local manufacturers of spare parts, it is also resulting in loss of billions of rupees to the national exchequer.
The Federal Board of Revenue (FBR) estimates show that over 170 billion rupees worth of goods are smuggled through ATT, causing loss of Rs 21.5 billion to the national economy.
Pakistani markets and shops are flooded with smuggled goods of all descriptions. Smuggled items through border with Iran, Afghanistan and ATT form a major part of the informal economy. Its volume ranges at 50-60 percent of the recognised economy, they said.
Industry sources said that smuggling of auto spare parts, like almost every other commodity, is being done through ATT under the nose of authorities responsible to stop this illegal trade. Almost 200 trucks loaded with smuggled goods come daily unhindered from Afghanistan.
"Every day, hundreds of consignments of spare parts arrive in Peshawar from Afghanistan, which are disseminated in major cities without any hesitation," an auto dealer said. Almost all types of auto parts, ranging from critical engine and transmission parts such as rings, pistons, gaskets, maintenance parts like oil filter and air filter are being imported from Thailand and Dubai in huge quantities making it difficult for local vendors of such parts to survive in the market.
Smugglers are selling these parts at 50-60 percent less rates than the parts made locally or imported through proper channels. This has attracted dealers who are doing good business with them to make high profits.
They say that a parallel alternative economy has taken roots in Pakistan and a major share of revenue, to be collected by the government, is being lost. It is a big question mark on the credibility of law enforcement and relevant authorities, but no permanent action has been taken.
They urged the government to maintain strict check on such smuggling as it would not only help the government increase revenue generation but would also enable legal businesses to generate more revenues and employment opportunities for the countrymen.