Pakistan has been ranked 101st out of 158 countries in the 2025 Illicit Trade Index, according to a report by The News International. The ranking raises serious concerns over the country’s economic stability and its capacity to attract foreign investment.
Pakistan’s struggle with illicit trade is inflicting a massive blow to its economy, resulting in an annual revenue loss of Rs 751 billion. Of this, the tobacco sector alone contributes Rs 300 billion, while other heavily affected sectors include petroleum products (Rs 270 billion), tyres and lubricants (Rs 106 billion), pharmaceuticals (Rs 60–65 billion), and tea (Rs 10 billion).
The Illicit Trade Index evaluates countries across key parameters such as customs and border controls, supply chain intermediaries, taxation policies, enforcement mechanisms, and the influence of criminal enablers. Pakistan earned a score of 44.5, falling below the global average of 49.9. Although the country performed relatively well in areas like Trade, Customs, and Borders (75.4), it lagged significantly in Supply Chain Intermediaries (25.9) and Sectoral Illicit Trade Indicators (29.3), showing major loopholes in internal trade regulation and compliance.