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Effect of smuggling on world wide trade, 
regional development of Afghanistan 
By: Pradeep—2k11/PA/51 
UnIVERSITY OF SINDH 
03322086145
SMUGGLING 
Running main aspects: 
* Drugs 
* Cigarette Smuggling 
* Alcohol Fuel 
* Armor  Gun Money 
* Cultural Property 
* Wildlife Trafficking
Opium production in Afghanistan 
Afghanistan has been the greatest illicit opium producer in the entire 
world, Afghanistan has been on the rise since U.S. occupation started in 
2001. Based on UNODC data, there has been more opium poppy 
cultivation in each of the past four growing seasons (2004–2007), 
In 2007, 92% of the non-pharmaceutical-grade opiates on the world 
market originated in Afghanistan. This amounts to an export value of 
about $4 billion, with a quarter being earned by opium farmers and the 
rest going to district officials, insurgents, warlords, and drug traffickers.
on-year fluctuations, opium production in 
Afghanistan
Drug trafficking and impact around the 
world 
." According to UNODC estimates bulk of Afghanistan's opium production 
goes to Iran either for consumption or for on-ward export to other 
countries in the region and Europe. Iran currently has the largest 
prevalence of opiate consumption in its population globally. 
According to EU agencies, Afghanistan has been Europe’s main 
heroin supplier for more than 10 years. 
Presently with the resurgence of high output production of opium 
and heroin in post-Taliban Afghanistan, there is an ongoing heroin 
addiction epidemic in Russia which is claiming 30,000 lives each 
year, mostly among young people. There were two and half million 
heroin addicts in Russia by 2009.
Flow of heroin
“According to Afghanistan’s official statistics, legally imported goods from 
Pakistan are worth $2.1 billion annually, while smuggled goods into 
Afghanistan makes up to $300 million annually.” 
Meanwhile, according to the tradesman, it is estimated that up to 
$550-600 million worth of goods are smuggled into Pakistan from 
Afghanistan annually
ISLAMABAD - The Khyber Pass, being an integral part of the Silk Road, has 
historically been an important pathway between the sub-continent and 
Afghanistan. This pass, among other routes between Afghanistan and 
Pakistan, has thus proven to be of great use for smugglers moving goods in 
and out of Pakistan and Afghanistan.
According to Petroleum Ministry officials, as much as Rs 22 billion 
petroleum products are being smuggled from neighbouring Iran and 
Afghanistan to Pakistan, which has reached at their peak now-a-days 
due to high prices of the products in the local market, causing hefty 
losses to national kitty. 
Tanvir Khan, an auto parts and vehicles trader based in Quetta, 
revealed that annually he is selling about 1,000 vehicles, which he 
brings from Chamman, Pakistan's border city with Afghanistan. He 
added that an estimated 50,000 different vehicles are being 
smuggled into the country from Afghanistan per annum.
Afghanistan Arms Smuggling 
The recent large-scale transfer of arms to Afghanistan from Central Asia 
and its distribution across the country is a bigger threat to the 
stability of the country as these arms may be used in future civil war 
against ethnic rivals. From Northern Afghanistan, these weapons are 
further transferred to Pakistan via Hindu Kush mountainous regions. 
Read more: 
http://outlookafghanistan.net/topics.php?post_id=970#ixzz3DBMOx 
d3A
PROBLEMS ASSOCIATED WITH SMUGGLING 
LOSS OF REVENUE 
Smuggling is an act of tax evasion which deprives government of revenue 
for public expenditure. 
DISTORATION OF MARKET PRICES 
Goods which are smuggled into the country are often sold a lot cheaper 
than goods brought onto market through the right procedures. 
Smuggling therefore deprives traders of free competition. 
COLLAPSE OF LOCAL INDUSTRIES 
A country achieves better economic growth by developing its own 
industrial base. Smuggling under-cuts prices of the locally manufactured 
goods thus destroying the market for local products. This leads to 
collapse of local indust
Smuggling very harms the economy of a country in different ways. It 
weak the local industry, discourages legal imports and reduces the 
volume of revenues collected from duties and levies by the state. 
A major proportion of the revenue to be collected by the Government is 
being lost.
Smuggling in afghanistan and effects to economy

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Smuggling in afghanistan and effects to economy

  • 1. Effect of smuggling on world wide trade, regional development of Afghanistan By: Pradeep—2k11/PA/51 UnIVERSITY OF SINDH 03322086145
  • 2. SMUGGLING Running main aspects: * Drugs * Cigarette Smuggling * Alcohol Fuel * Armor Gun Money * Cultural Property * Wildlife Trafficking
  • 3. Opium production in Afghanistan Afghanistan has been the greatest illicit opium producer in the entire world, Afghanistan has been on the rise since U.S. occupation started in 2001. Based on UNODC data, there has been more opium poppy cultivation in each of the past four growing seasons (2004–2007), In 2007, 92% of the non-pharmaceutical-grade opiates on the world market originated in Afghanistan. This amounts to an export value of about $4 billion, with a quarter being earned by opium farmers and the rest going to district officials, insurgents, warlords, and drug traffickers.
  • 4. on-year fluctuations, opium production in Afghanistan
  • 5. Drug trafficking and impact around the world ." According to UNODC estimates bulk of Afghanistan's opium production goes to Iran either for consumption or for on-ward export to other countries in the region and Europe. Iran currently has the largest prevalence of opiate consumption in its population globally. According to EU agencies, Afghanistan has been Europe’s main heroin supplier for more than 10 years. Presently with the resurgence of high output production of opium and heroin in post-Taliban Afghanistan, there is an ongoing heroin addiction epidemic in Russia which is claiming 30,000 lives each year, mostly among young people. There were two and half million heroin addicts in Russia by 2009.
  • 7. “According to Afghanistan’s official statistics, legally imported goods from Pakistan are worth $2.1 billion annually, while smuggled goods into Afghanistan makes up to $300 million annually.” Meanwhile, according to the tradesman, it is estimated that up to $550-600 million worth of goods are smuggled into Pakistan from Afghanistan annually
  • 8. ISLAMABAD - The Khyber Pass, being an integral part of the Silk Road, has historically been an important pathway between the sub-continent and Afghanistan. This pass, among other routes between Afghanistan and Pakistan, has thus proven to be of great use for smugglers moving goods in and out of Pakistan and Afghanistan.
  • 9. According to Petroleum Ministry officials, as much as Rs 22 billion petroleum products are being smuggled from neighbouring Iran and Afghanistan to Pakistan, which has reached at their peak now-a-days due to high prices of the products in the local market, causing hefty losses to national kitty. Tanvir Khan, an auto parts and vehicles trader based in Quetta, revealed that annually he is selling about 1,000 vehicles, which he brings from Chamman, Pakistan's border city with Afghanistan. He added that an estimated 50,000 different vehicles are being smuggled into the country from Afghanistan per annum.
  • 10. Afghanistan Arms Smuggling The recent large-scale transfer of arms to Afghanistan from Central Asia and its distribution across the country is a bigger threat to the stability of the country as these arms may be used in future civil war against ethnic rivals. From Northern Afghanistan, these weapons are further transferred to Pakistan via Hindu Kush mountainous regions. Read more: http://outlookafghanistan.net/topics.php?post_id=970#ixzz3DBMOx d3A
  • 11. PROBLEMS ASSOCIATED WITH SMUGGLING LOSS OF REVENUE Smuggling is an act of tax evasion which deprives government of revenue for public expenditure. DISTORATION OF MARKET PRICES Goods which are smuggled into the country are often sold a lot cheaper than goods brought onto market through the right procedures. Smuggling therefore deprives traders of free competition. COLLAPSE OF LOCAL INDUSTRIES A country achieves better economic growth by developing its own industrial base. Smuggling under-cuts prices of the locally manufactured goods thus destroying the market for local products. This leads to collapse of local indust
  • 12. Smuggling very harms the economy of a country in different ways. It weak the local industry, discourages legal imports and reduces the volume of revenues collected from duties and levies by the state. A major proportion of the revenue to be collected by the Government is being lost.