Examining Trade Misinvoicing Across World Regions: Evidence from Pakistan
Keywords:
Trade Misinvoicing, Capital Flight. Export Over-Invoicing. Export Under-Invoicing, Import Over-Invoicing, Import Under-Invoicing, Revenue Loss, Tariff.Abstract
Trade misinvoicing is a financial problem of developing countries, which causes Capital outflow and causes revenue losses for them. This research work analyzed the trade misinvoicing in Pakistan from 1971- 2021 for regional trade. The objective of this study is to find Trade Misinvoicing not only at the overall level but also at regional level. The Methodology of comparison of Data of Trade invoicing between trading countries is used to find Trade Misinvoicing in Pakistan. The Data obtained from IMF (direction of trade) used for determining regional wise trade misinvoicing. The results reveled that in overall misinvoicing was the highest in exports and imports with advance economies and total trade misinvoicing was highest with the emerging and developing economies. The lowest misinvoicing was with western hemisphere. Therefore, government of Pakistan should put efforts to control illicit financial flow due to trade misinvoicing by establishing transparent and fair check and balance system of trade authorities.
