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Afghan transit trade main smuggling funnel
| LCCI report says illegal commercial traffic promoting terrorism, causing $3b loss annually
May 11, 2015
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Amraiz Khan
LAHORE - Afghan transit trade is the main source of smuggling into Pakistan. Besides causing annual revenue loss of up to $3 billion to the national exchequer, it is also promoting terrorism in the country as explosive devices and other material are also being smuggled through it, it has been revealed.
The smuggled items help the militants in preparing bombs, suicide jackets, IEDs and explosive-laden vehicles, says a report prepared by Lahore Chamber of Commerce and Industry. Quoting a World Bank document it said that smuggling in Afghan transit trade alone caused $35 billion revenue loss in the period between 2001 and 2009.
Smuggling is now a routine in most of the economic activities in Pakistan. Pakistan is facing the enormous challenge of measuring and curbing revenue leakages due to smuggling, the report says. These leakages are estimated to be 50 to 60 percent of the regular economy. Cheaper products are being smuggled in Lahore like cloths, fancy tiles, auto parts, electronics goods, crockery and other items.
Due to excessive smuggling, thousands of industrial units have been rendered sick in Pakistan, due to the availability of cheaper smuggled goods in open markets. Shops and markets across the country, especially in the Lahore, are flooded with smuggled goods of all descriptions, said a trader talking to The Nation. He was of the view that smuggling destroys the local industry and makes it uncompetitive.
Smuggled items through the borders of Afghanistan, Iran, China, and the Afghan Transit Trade form a chunk of the informal economy. The report says that a high percentage of cheap Indian products imported by Afghanistan through Afghan Transit Trade end up in the domestic markets in Pakistan. This damages the national economy which is already suffering by the problems of inflation, high energy cost and terrorism.
A research in this regard said revealed that smuggled tea of worth Rs16 billion is being traded in the country. Similarly, the volume of smuggling is Rs18 billion in cigarettes, Rs22 billion in petroleum products, including smuggled LPG, Rs25 billion in auto-parts as well as vehicles and Rs200 billion in other products including cosmetics, clothing, footwear, medicines, spices, juices, electronics and other items are smuggled in the country.
The smugglers of oil, auto parts, cigarettes, tea, electronics and spices use Pak-Iran and, Pakistan-Afghan borders, along with the coastal areas of Balochistan to smuggle these items to various parts of the country, research says. A number of players are engaged in smuggling. Their motives, profits, legal status and responsibilities vary to a degree. Organised criminal groups engage in smuggling to maximise their profits and finance other criminal activities.
A well-known trader of Lahore seeking anonymity said that a lot of smuggling is done on the land routes of Chaman and Landi Kotal under the cover of transit trade. Effective checking at the Customs checkposts can play an important role in curbing the smuggling on these routes. The checkposts should be established on every 50 to 100 km distance on the roads heading into the country from Chaman and Landi Kotal, he suggested.
To minimise the risk of connivance, the duties of the collectors should be rotated after short intervals, he said. He was of the view that only honest and upright officers should be posted at Pak-Afghan and Pak-Iran borders and on the points of entry in Lahore. There should a proper mechanism, using the intelligence department to monitor the honesty of the officers, he proposed.
Posting of honest and fair Customs officers could also be instrumental to curb smuggling and strict punishment should be given to the officials involved in directly and indirectly assisting the smugglers, a Customs officer said on the condition of not to be named. He said that there were plazas of smugglers in different markets of the city and they have active connections with Customs officials who are supposed to curb smuggling.
Markets like Azam Market, Hall Road, Abid Market, Anarkali and Ferozpur Road are packed with smuggled items. In recent past Customs officials seized a godown in Abid Market and recovered smuggled electronics goods in huge quantity but no action was taken against any customs officials.
Similarly, FIA Anti Corruption Circle raided in different parts of the city and recovered smuggled goods but Customs officials were not happy with FIA on these raids. Customs senior officials termed the FIA act as illegal and misuse of authority and challenged the action of FIA in court but decision came against Customs. The Customs officials should be taken to task because smugglers can’t operate without connivance of anti smuggling staff.
| LCCI report says illegal commercial traffic promoting terrorism, causing $3b loss annually
May 11, 2015
SHARE :
Amraiz Khan
LAHORE - Afghan transit trade is the main source of smuggling into Pakistan. Besides causing annual revenue loss of up to $3 billion to the national exchequer, it is also promoting terrorism in the country as explosive devices and other material are also being smuggled through it, it has been revealed.
The smuggled items help the militants in preparing bombs, suicide jackets, IEDs and explosive-laden vehicles, says a report prepared by Lahore Chamber of Commerce and Industry. Quoting a World Bank document it said that smuggling in Afghan transit trade alone caused $35 billion revenue loss in the period between 2001 and 2009.
Smuggling is now a routine in most of the economic activities in Pakistan. Pakistan is facing the enormous challenge of measuring and curbing revenue leakages due to smuggling, the report says. These leakages are estimated to be 50 to 60 percent of the regular economy. Cheaper products are being smuggled in Lahore like cloths, fancy tiles, auto parts, electronics goods, crockery and other items.
Due to excessive smuggling, thousands of industrial units have been rendered sick in Pakistan, due to the availability of cheaper smuggled goods in open markets. Shops and markets across the country, especially in the Lahore, are flooded with smuggled goods of all descriptions, said a trader talking to The Nation. He was of the view that smuggling destroys the local industry and makes it uncompetitive.
Smuggled items through the borders of Afghanistan, Iran, China, and the Afghan Transit Trade form a chunk of the informal economy. The report says that a high percentage of cheap Indian products imported by Afghanistan through Afghan Transit Trade end up in the domestic markets in Pakistan. This damages the national economy which is already suffering by the problems of inflation, high energy cost and terrorism.
A research in this regard said revealed that smuggled tea of worth Rs16 billion is being traded in the country. Similarly, the volume of smuggling is Rs18 billion in cigarettes, Rs22 billion in petroleum products, including smuggled LPG, Rs25 billion in auto-parts as well as vehicles and Rs200 billion in other products including cosmetics, clothing, footwear, medicines, spices, juices, electronics and other items are smuggled in the country.
The smugglers of oil, auto parts, cigarettes, tea, electronics and spices use Pak-Iran and, Pakistan-Afghan borders, along with the coastal areas of Balochistan to smuggle these items to various parts of the country, research says. A number of players are engaged in smuggling. Their motives, profits, legal status and responsibilities vary to a degree. Organised criminal groups engage in smuggling to maximise their profits and finance other criminal activities.
A well-known trader of Lahore seeking anonymity said that a lot of smuggling is done on the land routes of Chaman and Landi Kotal under the cover of transit trade. Effective checking at the Customs checkposts can play an important role in curbing the smuggling on these routes. The checkposts should be established on every 50 to 100 km distance on the roads heading into the country from Chaman and Landi Kotal, he suggested.
To minimise the risk of connivance, the duties of the collectors should be rotated after short intervals, he said. He was of the view that only honest and upright officers should be posted at Pak-Afghan and Pak-Iran borders and on the points of entry in Lahore. There should a proper mechanism, using the intelligence department to monitor the honesty of the officers, he proposed.
Posting of honest and fair Customs officers could also be instrumental to curb smuggling and strict punishment should be given to the officials involved in directly and indirectly assisting the smugglers, a Customs officer said on the condition of not to be named. He said that there were plazas of smugglers in different markets of the city and they have active connections with Customs officials who are supposed to curb smuggling.
Markets like Azam Market, Hall Road, Abid Market, Anarkali and Ferozpur Road are packed with smuggled items. In recent past Customs officials seized a godown in Abid Market and recovered smuggled electronics goods in huge quantity but no action was taken against any customs officials.
Similarly, FIA Anti Corruption Circle raided in different parts of the city and recovered smuggled goods but Customs officials were not happy with FIA on these raids. Customs senior officials termed the FIA act as illegal and misuse of authority and challenged the action of FIA in court but decision came against Customs. The Customs officials should be taken to task because smugglers can’t operate without connivance of anti smuggling staff.
