Islamabad – Mubashir Akram, Country Director, ACT Alliance Pakistan, has called for sustained, nationwide enforcement against all forms of illegal trade and tax evasion, warning that the illegal economy continues to drain public revenue, distort markets, and discourage domestic and foreign investment.
Speaking to economy beat journalists in Islamabad on February 27, Akram said that Pakistan’s recovery and growth prospects depend on protecting the documented economy from illegal business mafias that have operated for decades. “Illegal trade is not a side issue that can be managed through occasional raids. It is a persistent economic threat that undermines the tax base, weakens legitimate businesses, and makes investors question whether compliance is rewarded,” he said.
He emphasized that the problem is visible across multiple high-consumption and high-risk sectors, with illegal trade and resulting tax evasion in tobacco, tea, pharmaceuticals, and consumer goods repeatedly damaging fair competition. “When non-tax-paid goods capture shelf space and market share, the compliant businesses are penalized. That reduces their capacity to invest, expand, and hire,” he said. “It also pushes the state toward higher rates on those who already comply, which further strains the documented economy.”
Akram highlighted that predictable weaknesses, porous routes, informal warehousing, cash-based distribution, and a low perceived risk of repeat offenders often enable market distortions created by illegal trade. “If illegal operators can move products into city markets with minimal disruption, enforcement becomes a temporary event rather than a permanent deterrent,” he said. “Pakistan needs continuity, coordination, and consequences.”
He called for a whole-of-government posture where enforcement agencies share intelligence, align targets, and sustain pressure across supply chains from entry points to wholesale markets to retail outlets. He also stressed the importance of using technology and documentation tools to reduce discretion and improve traceability, while ensuring that penalties are consistently applied. “Systems only work when field enforcement follows through. Technology must be matched with visible action and prosecution,” he said.
Addressing the role of journalists, Akram urged the media to treat illegal trade as an economic governance story, not only a law-and-order headline. “Economy reporters shape the national understanding of how revenue is generated and lost. The media can expose the business models of illegal mafias, highlight how tax evasion drains development capacity, and keep public attention on enforcement outcomes,” he said. “Illegal trade and tax evasion in tobacco, tea, pharmaceuticals, and consumer goods must remain part of the economic conversation, because these are everyday markets where the damage is continuous.”
He concluded by urging sustained national resolve. “The government’s actions against illegal trade must be continuous, not seasonal. Every time enforcement pauses, the illegal networks regroup. Pakistan can protect legitimate business, strengthen revenues, and improve investor confidence only by keeping pressure on all forms of illegal trade until the market learns one rule: compliance is the only workable business model,” he said.
