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72% Indians, 60% Pakistanis report irregular payments in bilateral trade: Study

byCustoms Today Report
23/07/2015
in Business
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LAHORE: The integrated check posts (ICPs) of Attari and Wahga are the most preferred ways of bilateral trade between Pakistan and India mainly due to corruption, claimed a survey.

The trade through the mentioned posts have also been termed as hawala transactions in the study conducted by Chandigarh-based research body Centre for Research in Rural and Industrial Development (CRRID).

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The report, prepared by Professors Sucha Singh Gill and Davinder Kumar Madaan of the department of social science, Punjabi University, Patiala, has been submitted to the Asia Foundation.

Talking to Times of India, Prof Gill said during the survey-cum-study it was found that under-billing by some of the Indian exporters in lieu of drugs, fake currency and arms being supplied by unscrupulous elements in Pakistan, was one of the biggest problems faced by the traders.

Prof Gill said not only the Indian government lost customs duty on revenue but the nation also faced a serious security threat due to this. “The study found that 72 percent and 60 percent of Indian and Pakistani respondents respectively admitted that ‘hawala’ or irregular payments occurred in the bilateral trade,” he said.

Around 24 percent of the Indian and 14 percent of Pakistani respondents said that corruption and harassment at the custom stations on both sides of the ICP were affecting the trade. He said the study focused on various stakeholders, including importers, exporters, producers, freight forwarders and trade body leaders, from both India and Pakistan. Total 332 stakeholders, 230 from India and 102 from Pakistan, took part in the survey. The stakeholders in India were interviewed in Amritsar, Ludhiana, Tarn Taran, Firozpur and Jammu while their Pakistani counterparts were interviewed in Lahore, Faisalabad, Islamabad, Rawalpindi, Rawalkot, Muzaffarabad and Karachi.

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