Approximately 90,000 liters of Iranian crude oil is smuggled into Pakistan every day.This rampant smuggling cost the national treasury a staggering $816 million.
[Islamabad] Pakistan’s intelligence agencies, in a joint report, revealed a significant spike in Iranian oil smuggling in the country.
The report, submitted to the Petroleum Ministry on Thursday, reveals an alarming escalation in this illegal activity. “While this illicit trade decreased significantly during the interim government, following the recent general elections (held in February 2024), illicit trade has now increased by a staggering 67%,” the report said. ing.
The report also revealed a troubling relationship between militant groups in the country’s southwestern Balochistan province and profits from oil smuggling. This suggests that banned Baloch armed groups operating in rebel areas, such as the Baloch Liberation Army (BLA) and Baloch Liberation Front (BLF), are directly involved in this illegal oil trade. .
According to the report, underground smuggling activities are flourishing in Balochistan, spanning six land and sea routes across five districts. An estimated 90,000 liters of Iranian oil are smuggled every day, and about 70% of this oil goes to consumption centers in Pakistan’s other three major provinces.
“2.8 billion liters of Iranian oil, including diesel and gasoline, are smuggled into Pakistan every year,” the report said. This rampant smuggling has resulted in staggering losses of at least 227 billion rupees. [an estimated $816 million] It will be paid to the national treasury. ”
According to the report, approximately 2.2 to 2.4 million people, or 14% to 16% of Balochistan’s population, are dependent on Iranian oil smuggling within the province.
The report further notes that “individuals primarily from the terrorism-affected areas of southern Balochistan engage in this trade, primarily due to limited economic prospects in the region. ” he said.
A 44-page report prepared by intelligence agents exposes the involvement of a number of high-profile individuals in this smuggling ring. Those involved include current members of Baluchistan’s parliament, former provincial ministers, and prominent politicians.
The report identified 105 smugglers from 14 districts of Baluchistan province, including the provincial capital Quetta, who play a central role in facilitating the illegal trade. It also identified 100 corrupt officials across the country who were allegedly involved in oil smuggling.
Additionally, the report highlights that 533 petrol pumps are operating without proper licenses and are actively involved in selling contraband Iranian oil.
The report highlights the urgent need for unspecified measures to counter the multiple threats facing the country from Iran’s oil smuggling activities. These threats include loss of revenue, depletion of foreign exchange reserves, and damage to a nation’s reputation.
Illegal oil trade in Pakistan’s Balochistan province is not new. It has already been around for several decades. Iran’s oil smuggling primarily occurs within the Baloch belt, which is characterized by rugged mountain ranges, uninhabited deserts, and a lack of industrial and economic opportunities for the population. Districts identified by intelligence agencies as being prone to Iranian oil smuggling are located within the same belt. As a result, the only source of employment for the local population revolves around the illegal oil trade.
According to official records, about 60,000 people live in Mashkel, which stretches along the Pakistan-Iran border. Two to three people per household in this town are involved in the oil smuggling trade. This makes a complete shutdown difficult, as the government has no alternative solutions.
Despite repeated promises and assurances by the Pakistani government to crack down on smuggling and illegal trade within its borders, efforts so far have proven ineffective in curbing this nefarious activity.
Baloch extremists on both sides of the border are exploiting these grievances to advance their own agendas. They blame the central governments of both countries for the backwardness of their regions and the creation of a hostile environment.
Malik Siraj Akbar, a Baloch tribe and Washington-based expert on Balochistan issues, told Media Line, “With the backdrop of poverty and underdevelopment in the Baloch region, Baloch militants on both sides of the border are They are using the dissatisfaction of others to advance their own agenda.” . They blame the central governments of both countries for the backwardness of their regions and the creation of a hostile environment. ”
Akbar highlighted the tremendous support the rebels received from the local population, noting that “this support often exceeds the support received by the armed forces of Iran and Pakistan.”
“Both countries have responded by strengthening security measures and increasing cooperation to fight Baloch insurgents,” he noted. However, Akbar warned that such a crackdown could motivate extremists to seek other sources of funding for their movement.
He also stressed that the Baloch insurgency has spread its influence far beyond the border areas and “has the potential to destabilize the broader geopolitical situation.” This situation creates opportunities for external actors to exploit the vulnerabilities of affected countries, thereby complicating efforts to establish lasting peace and security in the region. ”
Expanding on this point, Mr. Akbar said, “sustained insurgency in the Baloch region poses serious challenges to regional security and stability.” The ongoing unrest has disrupted the socio-economic fabric of the affected areas and heightened tensions between neighboring countries. ”
He elaborated, “The complex intertwining of socio-economic dynamics, political interests and security concerns makes resolving the Baloch insurgency problem even more complex.”
Dr. Dost Balech, a geostrategic analyst who teaches international relations at the University of Balochistan, told The Media Line: Tightening enforcement could make these people feel insecure. Lacking alternative skills and education, they will face the grim prospect of unemployment and financial hardship. ”
He emphasized “the need for comprehensive policy formulation that takes into account the complex economic and social dynamics of the region.” Investments in education and skills training programs can reduce dependence on a single industry and provide alternative means of livelihood. ”
Valec also said that if terrorists are involved in this illegal trade, “this issue becomes a question mark for our security forces.”
Barech emphasized the importance of China’s massive investment of $400 billion in Iran, noting that a significant amount is going to sectors other than energy. He emphasized the mutual need for stable trade routes between China and Iran, saying Pakistan must seize this opportunity and advised the government to withstand US pressure.
Barech proposed that the government “legalize trade in Iranian oil to strengthen the economy and promote the development of underdeveloped regions.” He argued that this approach would foster economic growth and uplift disadvantaged regions.
The trade in Iranian oil, which is often considered smuggled, has been the subject of long-running debate due to its negative impact on Pakistan’s economy and its alleged support for Baloch armed resistance. However, despite widespread recognition of these issues, concrete action plans to address the situation are lacking.
“The trade in Iranian oil, which is often considered smuggled, has been the subject of long-standing debate due to its negative impact on Pakistan’s economy and its alleged support for Baloch armed resistance,” said Quetta-based political analyst Khazar. – Mr. Khan Baloch elaborated. He told The Media Line that he is monitoring border issues.
“However, despite widespread recognition of these issues, concrete action plans to address the situation are lacking,” he added.
Baloch asserted that “the main obstacle to taking effective measures against this trade is the involvement of various stakeholders, including politicians and border guards.” This complex set of interests often causes the smuggling process to restart after a temporary hiatus. ”
He further asserted that Iranian oil trade is an important source of employment, especially for residents of the border areas of Balochistan.
The resurgence of Iranian oil smuggling poses a significant challenge to Pakistan’s law enforcement agencies. It undermines national security and facilitates corruption and illicit financial flows.
“The resurgence of Iranian oil smuggling poses a significant challenge to Pakistan’s law enforcement agencies. It undermines national security and facilitates corruption and illicit financial flows,” he claimed.
“The involvement of government officials and politicians in this disgraceful business also contributes to a culture of impunity where criminal elements flourish at the expense of law-abiding citizens,” Baloch added.
“As authorities grapple with this pressing problem, urgent action is needed to dismantle the complex networks that perpetuate this illegal trade and protect national interests,” he concluded.
Kiamuddin Agha, chairman of Balochistan Oil Marketing Association, expressed concern over the impact of Iranian oil smuggling on legal petrol pumps.
“While Iranian oil is undermining our legitimate business, there is also a humanitarian dimension to consider. Despite the losses, we remain open. “As it decreases, our sales will increase,” he told The Media Line, adding, “Especially considering the limited business opportunities in Balochistan, we need to preserve employment opportunities and harm legitimate petrol distributors.” He emphasized the need for government policies that do not
To boost Pakistan’s national economy, leaders from both the private and military sectors met in March to discuss and address obstacles to Pakistan’s financial growth, including smuggling, corruption and organized crime.
The high-level meeting, chaired by Prime Minister Shehbaz Sharif and attended by civilian and military leaders, carefully considered strategies to combat various illegal activities, including Iran’s oil smuggling trade and criminal mafia.
