Illegal trade and tax evasion: Govt urged to pursue consistent crackdown

ISLAMABAD: The ACT Alliance Pakistan has once again urged the Government of Pakistan to pursue a consistent, year-round crackdown on illegal trade and tax evasion, describing both as the most corrosive threats to national economic stability.

Speaking at a presentation to a group of business leaders in Islamabad, Mubashir Akram, National Convenor of ACT Alliance Pakistan, outlined how unchecked illegal economic activity continues to drain Pakistan’s revenue, distort competition, and discourage formal investment.

“Pakistan’s economy is bleeding through its own veins,” said Akram. “With illegal trade and tax evasion costing the national exchequer trillions of rupees annually, we cannot afford to treat enforcement as a seasonal initiative. This must become a continuous, institutionalized priority.”

While appreciating the government’s recent actions to control smuggling, monitor key industries – such as cement, tobacco, and sugar – and track untaxed products, Akram emphasized that these operations must not be limited to the pre-budget season.

“Every year, we witness a spike in enforcement and policy discussions as the federal budget approaches, only for them to lose steam later,” he said. “National recovery cannot hinge on one quarter. We must institutionalize our economic discipline.”

Addressing the audience of industrialists and corporate stakeholders, Akram also appealed to the business community to become vocal against these persistent challenges.

In a significant part of his remarks, Akram highlighted the influence of foreign-funded lobbyists who re-emerge each year around budget time with narrowly focused agendas that may align with donor interests but not with Pakistan’s economic realities.

“We have nothing against public health or policy dialogue,” he clarified, “but when lobbying groups running on foreign funding attempt to shape Pakistan’s tax policies while disregarding enforcement realities, they weaken our national sovereignty. The budget is not just a document of numbers; it is the most powerful expression of a nation’s economic will and self-determination.”

Akram strongly requested the federal government to base all budget decisions on indigenous assessments and domestic economic needs rather than donor-driven templates or imported advocacy campaigns.

“Let our policies be driven by reasoned economic strategy, not pressure from abroad or their local support system in Pakistan,” he said. “We trust the government’s intent, and now is the time to defend our economic autonomy.”

He concluded by reaffirming ACT Alliance Pakistan’s commitment to supporting legal economic activity, standing against illegal trade, and working with stakeholders across business, media, and civil society to advocate for fair and effective governance.

ACT Alliance Pakistan has been working since 2016 as a civil society platform to combat illegal trade, tax evasion, smuggling, and counterfeiting. Through evidence-based advocacy and stakeholder engagement, the Alliance promotes legal economic practices as the foundation for national development and sovereignty.

Copyright Business Recorder, 2025