BR Research

Demystifying the illegal economy in Pakistan

Published February 3, 2012 Updated February 3, 2012 12:00am

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Illegal Economy in Pakistan: A snapshot
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Activities                               Dynamics                                                                Value (p.a)
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Drugs & precursors                       Trafficked via Pakistan to Iran, ME, Africa, East Asia & the West       $0.9-1.2 bn
                                         44 percent of Afghan Heroin transited through Pakistan
Human trafficking & migrant smuggling    Destination, transit and source country                                     $107 mn
                                         Trafficking women & children for sex trade, child labor & bonded labor
                                         Illegal emigration of Pakistanis (& Afghans) to Europe and ME
Arms trafficking                         70 pc of arms meant to fight Soviets ended up in local black mark            $52 mn
                                         Unregulated private ordinance manufacturing factories in FATA
Illegal timber trade                     Timber prices higher in Pakistani cities than world average                  $23 mn
                                         Timber contractors harvest beyond sustainable and legal limits
                                         Patronage by non-state actors in troubled areas along border
Kidnapping for ransom                    A multi-ethnic phenomenon; on the rise since 2007                            $10 mn
                                         Three-fold, organised setups: Kidnapper, middleman, bargainer
                                         Hostages usually kept in tribal regions due to weak control of LEAs
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Source: "Examining the dimensions, scale and dynamics of the illegal economy: A study of Pakistan in the region": SDPI, UNODC (January 27, 2012)