The counterfeit advantage

Business Recorder reported that Indian consumer brands still reach Pakistani shelves through informal channels, even though formal trade with India has been suspended. Counterfeit versions are reportedly produced locally and sold openly at wholesale centres in Karachi and Lahore, across personal care, hair colour, tea and confectionery. The article's central concern is the cost edge that producers gain by operating outside the formal system, since they skip trademark fees, quality control and import duties.

Figures from a recent assessment suggest lost tax collection across five illicit sectors is roughly Rs751 billion each year, with tobacco and petroleum products making up the biggest portion. The article also cites Pakistan's 101st place out of 158 countries on the 2025 Illicit Trade Index. The writer ties this to rising taxes and compliance costs for formal firms, which widen the price gap with illegal goods while enforcement stays weak.

The piece argues that customs action and occasional raids have limited effect, since counterfeit production moves further down the supply chain. It calls for tracing manufacturers and distributors, better coordination among Customs, provincial authorities and the Intellectual Property Organisation, and faster prosecution of trademark cases. For multinational consumer firms, the article says, weak trademark protection cuts the anticipated payoff from operating in the market.