PBIF demands strict action against black economy

Lahore: President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, First Vice Chairman of the Businessmen Panel of FPCCI and former Provincial minister Mian Zahid Hussain on Friday demanded strict action against black economy as smuggling, under invoicing and money laundering continue to damage economy and discourage investors.

Reducing size of undocumented economy is the best way to expand documented economy which requires action as cosmetic measures have only wasted resources and helped criminals, he said.

Mian Zahid Hussain said that half-hearted measures of anti-smuggling agencies has helped enemies of country while these departments suffer from lack of coordination, overlapping powers, confusing jurisdiction, lack of accountability and absence of will.

He lauded the efforts of FIA against those involved in hundi and terror financing in Peshawar and demanded that sphere of such raids should be widened across the country.

The veteran business leader said that only eleven commodities which are smuggled into Pakistan are worth 3.88 percent of the GDP which is alarming as the ratio of smuggling in India is 0.43 of GDP and 0.04 in Bangladesh while it is less than one percent of GDP in dozens of countries.

Mian Zahid Hussain said that tyres, tea, auto parts, mobiles, TVs and diesel in country smuggled at the percentages of 59, 47, 57, 59, 57, and 33 respectively. Moreover the smuggling of LPG, cement, tiles, plastic, steel and automobiles continue to increase which is hitting industrial sector, reducing jobs and revenue.

He said that a lot of toys, clothes, crockery, electrical items, sanitary etc. are being imported which is under invoiced to save customs duty which has resulted in zero investment in these sectors. Stopping money laundering, under invoicing and smuggling in the only option we have, he warned.