Pakistan is grappling with a crippling economic crisis, losing a staggering USD 23 billion per year due to the pervasive issues of black marketing and smuggling, according to a recent report by ACE Money Transfer, a UK-based company.  These illicit activities encompass a wide range of clandestine operations, including black market currency trading, oil smuggling, gold smuggling, and circumvention of import controls.  The impact of these activities is not only causing significant financial losses but also posing a severe threat to Pakistan’s economic stability, government revenue, and overall financial health. The ACE report underscores the profound consequences of these underground economic activities. They not only foster a shadow economy, making it increasingly challenging to monitor and regulate financial transactions, but also distort exchange rates.  This distortion, in turn, leads to currency devaluation and soaring inflation as imported goods become prohibitively expensive for ordinary citizens. Perhaps more worrying is the erosion of trust and confidence in Pakistan’s financial system, as these illicit operations undermine the effectiveness of monetary policies.  In recent years, Pakistan has witnessed significant fluctuations in exchange rates, exacerbating its economic woes.  To address these pressing issues and pave the way for economic recovery, experts unanimously stress the immediate need to eradicate smuggling in key sectors. Rashid Ashraf, CEO of the ACE group of companies, emphasizes that improved governance is the linchpin for achieving this objective.  He asserts that a concerted effort to combat smuggling and enhance regulatory measures will not only restore stability to financial markets but also foster economic and financial growth in Pakistan. The ACE report provides a breakdown of the staggering losses incurred by Pakistan. Dollar smuggling alone siphons off approximately USD 150 million per month, resulting in an annual loss of around USD 2 billion.  The gold smuggling racket is another major concern, with only a mere 1.32 percent of the total gold market value of PKR Rs 2.2 trillion (equivalent to USD 7.1 billion) being officially declared to tax authorities. A grave concern is the rampant smuggling of Iranian oil, which accounts for over 30 percent of Pakistan’s diesel market. This nefarious trade deprives the government of more than USD 1 billion in revenue each year, further exacerbating Pakistan’s economic woes. The report also underscores the unintended consequences of import bans, which, though well-intentioned, have led to the emergence of a shadow economy. Smuggling, misreporting, and product substitution have become commonplace methods to bypass import restrictions. This disruption in economic activity is poised to escalate unemployment figures, with projections exceeding 2 million people unemployed by the end of 2023 if corrective measures are not taken urgently. To chart a course towards economic stability, Pakistan must prioritize a comprehensive crackdown on smuggling in key sectors, bolster governance, and put an end to illicit activities.  Only through these concerted efforts can Pakistan hope to surmount its economic challenges and establish a foundation for sustainable growth. The time to act is now, as the economic well-being of the nation hangs in the balance. Source: Khalsa VOX

Rampant smuggling, black marketing and hoarding are key reasons for the unprecedented wheat crisis across Pakistan, more so in the marginal provinces like Pak occupied Kashmir and Gilgit-Baltistan areas. In these far-flung areas, people do not not even know that wheat trucks meant for them are diverted to Afghanistan for huge profits by a cabal of millers, wheat stockists and government officials. The situation is set to get even more as the Pakistan government has only managed to procure 4.9 million tons of wheat under the procurement campaign for the current as against the target set for 7,8 million tons. It means Pakistan has managed roughly half of wheat grains which should be safely stored for public use. The situation in the occupied Kashmir and Gilgit Baltistan is getting unsettled by frequent street protests, power shortages, business shutdowns, causing widespread public misery and anger. The condition of the hapless people is reflected in the placard held by children and their parents protesting against wheat shortage in  the Gurez area of Neelum valley–“Flour is expensive [and] death is cheap”. Early this year, businesses and people shut down in Gilgit Baltistan over land reforms, imposition of taxes, wheat shortage and prolonged blackouts in the region with the provincial government failing to convince the people to give up agitation. Over 10 districts suffered major disruptions with religious and political parties supporting the public anger against the government. In Pak occupied Kashmir, the situation is even worse with daily reports of stampedes and fights over wheat distribution. Thousands wait out in long queues and when trucks arrives, a stampede breaks out making it almost impossible for young children and women to get their share of wheat flour. Clashes are common in the area. The stark shortage of wheat is clear from the statistics–the area needs at least 3300 tons of wheat flour but manages to get only 2400 tons. This leaves a huge gap, leaving thousands to either go back without wheat flour bags or buy  According to the English daily, Dawn, despite huge imports and availability of local crop, consumers were forced to cough up Rs2,315-3,160 for a 20kg flour bag as compared to Rs800-1,500 exactly a year back. One of the most serious, and ignored, complaints is that of large scale smuggling of wheat from Punjab and Sindh to Afghanistan and other areas. Long lines of trucks and tractor trolley laden with wheat are taken from Hyderabad, Mirpurkhas, Shahaeed Benazirabad, Sukkur and Larkana divisions to Afghanistan, and through Karachi to Balochistan areas. It was reported that influential businessmen were paying Rs75,000 to Rs 100,000 per vehicle as bribe to food officials, administrations of districts and police officials to cross their wheat-loaded heavy vehicles into Afghanistan. Over 200 such vehicles every day move to Afghanistan from Johi, Khairpur Nathan Shah, Mehar and Dadu talukas alone. The total number of such smuggling vehicles could outnumber 1000 every day. Farmers allege that government officials were deliberately withholding supply of gunny bags to all the wheat growers to enable shortage of supply. Besides smuggling, it is hoarding which is keeping wheat an expensive food item. Millers have reportedly stocked up to 200,000 bags of 100kg, many of which are later on sold in the open market at higher price. The abject failure of the federal government could be seen in Prime Minister Shehbaz Sharif most recent (May 12) direction to take action against hoarders and smugglers of wheat flour. It was the same thing which he has been saying every time the wheat crisis hits headlines. Source: alarabiyapost.com

Food Minister Sadhan Chandra Majumder on Saturday said the government will not take the responsibility if anyone is shot to death along the border while bringing cattle from India. He made the remarks while talking to reporters after attending the founding anniversary program of Damkurahat High School in Poba upazila of Rajshahi. “It’ll be pointless to blame others unless our character is good,” he said when asked about the shooting down of three Bangladeshi nationals by members of Indian Border Security Force (BSF) in his constituency Porsha of Naogaon. On January 23, the three Bangladeshis –- Sanjit Kumar, Mofizul Islam and Kamal Hossain -- were killed by BSF members along Doarpalla border in Porsha upazila of Naogaon. BSF men also took away the bodies of two of the victims. The minister said, “We won’t allow anyone to bring cattle from India. Our upazila, district law-and-order committees and BGB adopted a resolution in this regard. Bangladesh government won’t take the responsibility if anyone is shot to death while bringing cattle cutting the barbed-wire fence.” He also said efforts are on to bring back the bodies of the two Bangladeshi nationals. Border killing has been a contentious bilateral issue between the two neighbors who share a porous 4,100-km border. Delhi had promised to bring down border killings to zero over the years but the BSF continues to shoot dead Bangladeshis along the border. Source: UNB AH