Islamabad – ACT Alliance Pakistan has welcomed the recent actions by the Government of Pakistan, the Federal Board of Revenue, Inland Revenue Service, Pakistan Customs, and the police against a wide range of illegal businesses, and has urged the authorities to sustain and deepen this campaign.
Recent months have seen a visible increase in raids, seizures, and factory closures targeting illegal cigarettes, gutka, electronics, beverages, cosmetics, tyres, and even liquor that had been entering Pakistani markets without payment of duties and taxes. These products were damaging the formal economy, encouraging unfair competition, and eroding badly needed tax revenues.
Mubashir Akram, Country Director, ACT Alliance Pakistan, said that this new seriousness is critical for Pakistan’s economic stability. “When the state moves firmly against illegal businesses, it protects law-abiding investors who follow the rules, pay taxes, and create jobs,” he said. “The actions against illegal cigarette factories and smuggling networks are a critical signal that Pakistan intends to defend the formal economy.”
He noted that the cigarette sector alone already contributes hundreds of billions of rupees in taxes every year through federal excise duty and sales tax. In contrast, the illegal cigarette trade is estimated to cost the national exchequer a comparable amount. “If the government completely shuts down illegal cigarette production and trade, the total tax contribution from this sector can rise very sharply to nearly Rs. 600 billion, helping to close the fiscal gap and to reduce pressure on compliant taxpayers,” Mubashir Akram said.
ACT Alliance Pakistan also welcomed the fact that enforcement agencies have moved against politically connected operators, including factories in Khyber Pakhtunkhwa owned or controlled by influential figures. “No one should be above the law,” he said. “When enforcement reaches every illegal factory, regardless of political backing, it sends a powerful message to domestic and foreign investors that Pakistan is serious about fair competition.”
The organization called for continued coordination among Inland Revenue, Pakistan Customs, the Rangers, and provincial police to disrupt illegal supply chains at every stage, from border crossings and warehouses to factories and retail outlets. It also urged federal and provincial governments to publicly report results in terms of goods seized, factories sealed, and additional revenue collected.
“Pakistan loses enormous sums every year through illegal businesses,” Mubashir Akram concluded. “By staying the course and keeping pressure on all forms of illegal trade, especially in cigarettes, fuel, pharmaceuticals, and consumer goods, the government can protect honest businesses, improve investor confidence, and secure a stronger economic future for the country.”