Islamabad [Pakistan], May 2: Pakistan has been ranked 101 out of 158 countries in the 2025 Illicit Trade Index, signaling serious concerns over the country’s economic stability and its ability to attract foreign investment. The findings were reported by The News International, based on a study jointly released by the Policy Research Institute of Market Economy (PRIME) and the Transnational Alliance to Combat Illicit Trade (TRACIT).
The report, titled “Pakistan’s Battle Against Illicit Trade: An Analysis of Challenges and Pathways to Resilience,” reveals that the country suffers an annual revenue loss of Rs 751 billion due to illegal trade activities. The tobacco sector alone accounts for Rs 300 billion of this loss, followed by petroleum products (Rs 270 billion), tires and lubricants (Rs 106 billion), pharmaceuticals (Rs 60–65 billion), and tea (Rs 10 billion).
Pakistan scored 44.5 on the index, falling short of the global average of 49.9. Among six evaluated dimensions, the country performed best in Trade, Customs and Borders with a score of 75.4, reflecting relatively robust border control mechanisms. However, it lagged severely in Supply Chain Intermediaries (25.9) and Sectoral Illicit Trade Indicators (29.3), highlighting weak internal trade practices and compliance failures.
The nation also recorded moderate scores in Taxation and Economic Environment (47.3), Regulatory Framework and Enforcement (46.4), and Criminal Enablers of Illicit Trade (42.7), suggesting systemic shortcomings in governance and law enforcement.
The report concludes that while some progress has been made in border control, comprehensive internal reforms are essential to dismantle illicit trade networks and build a resilient economic framework.