Tackling Illicit Trade and Counterfeiting in Pakistan

Pakistan faces a significant challenge from illicit trade and counterfeiting, a reality starkly reflected in the ‘2025 Illicit Trade Index’, published by the Transnational Alliance to Combat Illicit Trade (TRACIT), where Pakistan ranked 101 out of 158 countries.

With an overall score of 44.5 out of 100, well below the global average of 49.9, Pakistan demonstrates substantial vulnerabilities in safeguarding against illicit commercial activities.

Source: Shell Pakistan.

While the country shows commendable institutional strength with regard to trade, customs, and border controls (score 75.4), this is overshadowed by profound weaknesses in its tax framework and management of informal economies (47.3), regulatory frameworks and enforcement (46.4), ability to counteract corruption and organised crime (42.7), ability to control supply chain hotspots vulnerable to illicit trade (25.9), and ability to control illicit trade in specific sectors (29.3).

These disparities underscore systemic gaps in oversight, regulation, and inter- agency coordination, suggesting that Pakistan’s existing legal and institutional frameworks are insufficient to manage the scale and complexity of illicit trade.