Pakistan trade value gap hits $119bn: GFI

March 25, 2026 (MLN): Pakistan has accumulated a staggering $119.4bn trade “value gap” over the past decade, showing heightened risks of illicit financial flows (IFFs) and trade-based money laundering, according to a new report by Global Financial Integrity (GFI).

Titled "Trade-Related Illicit Financial Flows in the Middle East and North Africa (2013–2022)," the study reveals that Pakistan loses an average of $11.9bn annually due to misinvoicing and other trade discrepancies.

The report explains that the “value gap” the difference between what Pakistan reports as trade and what its international partners record serves as a primary indicator of trade misinvoicing.

This practice involves the deliberate falsification of the price, quantity, or quality of goods on customs invoices to move capital illegally across borders.

Such illicit flows drain resources that are urgently needed to finance public services and infrastructure, with countries experiencing high outflows typically investing significantly less in health, education, and social development.

Data from the report shows a clear split in the source of the trade discrepancies. Of the total $119.4bn cumulative gap, $54.3bn was linked to trade with advanced economies, while $65.1bn occurred in trade with non-advanced or regional economies.

Pakistan now ranks among the top economies in the MENA region for absolute trade gaps, trailing only the major oil-exporting hubs of the UAE, which recorded a gap of approximately $457bn, and Saudi Arabia at $320bn.

To address these multi-billion dollar leaks, the report urges Pakistan to pursue comprehensive reforms.

Modernizing customs operations through digital monitoring systems and AI-driven analytics could help detect pricing anomalies in real-time.

Additionally, enhancing beneficial ownership transparency by identifying the real individuals behind companies can prevent the use of anonymous shell firms for illicit capital flight.

Tackling Pakistan’s $119bn trade value gap is critical not only for economic stability but also for ensuring sustainable public investment in key sectors.

With trade misinvoicing risks on the rise, timely reforms in customs, corporate transparency, and monitoring mechanisms are essential to plug revenue leaks and strengthen the country’s fiscal health.

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