ISLAMABAD: Pakistan on Wednesday announced it had launched a “massive” crackdown on smuggling along its porous border with Iran, as its illicit economy continues to pose a major economic and security challenge for the country.
Experts say the illicit economy in Pakistan relies on collusion among Pakistan’s law enforcement institutions, political elites, and criminal and militant networks operating in the border regions of Afghanistan, Pakistan, and Iran.
In May last year, an association of petroleum dealers flagged a surge in the smuggling of Iranian fuel to Pakistan, saying that up to 35 percent of diesel sold in the South Asian country had arrived illegally from Iran. The association said in the past, the smuggling of fuel was limited to the Pakistani province of Balochistan, but that it had now spread to the rest of the country.
In April, Pakistan’s energy ministry asked security forces to clamp down on fuel smuggling from Iran, according to an official memo, which said diesel sales had slumped “more than 40 percent” due to smuggled products.
Pakistan mostly meets its demand for fuel from the Middle East, but it is also smuggled in through its western border with Iran.
“The federal government has launched a massive crackdown against smuggling in line with its efforts to further strengthen economy,” state-run Radio Pakistan reported on Wednesday.
“According to latest statistics, 126.4 metric tons of sugar, 4 metric tons flour, 3252 sticks of cigarettes, and approximately one million liters of Iranian oil were seized by the relevant departments during the first week of this month. The concerned departments are committed to continue their operations to prevent smuggling.”
The country is facing an acute balance of payment crisis and undertaking several measures, including raising fuel prices, to get clearance for a $7 billion International Monetary Fund bailout signed in July.
The energy ministry said last year according to the Oil & Gas Regulatory Authority (OGRA), around 4,000 tons per day of fuel smuggled into Pakistan was causing a total revenue loss of around 10.2 billion rupees a month.
Pakistan’s government has also ordered a clampdown on smuggling of flour, wheat, sugar and fertilizer to Afghanistan.
