• العربية
  • فارسی
BrandBrand
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
  • Theme
  • Language
    • العربية
    • فارسی
  • Iran Insight
  • Politics
  • Economy
  • Analysis
  • Special Report
  • Opinion
  • Podcast
  • Live TV
All rights reserved for Volant Media UK Limited
volant media logo

Report Uncovers $1 Billion Annual Fuel Smuggling from Iran to Pakistan

Iran International Newsroom
May 7, 2024, 19:34 GMT+1
A Baluch fuel smuggler
A Baluch fuel smuggler

Iranian traders are smuggling more than $1 billion worth of fuel into neighboring Pakistan annually.

According to a Pakistani intelligence report spanning 44 pages, "Smuggling of Iranian Oil," sheds light on a long-standing illegal trade that escalated following US-imposed sanctions on Iranian oil exports a decade ago.

The sanctions pushed Tehran to seek alternative markets, significantly boosting the smuggling operations across the 900-kilometer Iran-Pakistan border.

The report reveals that last year alone, approximately $1.02 billion worth of Iranian petrol and diesel was illegally transported into Pakistan, making up about 14% of Pakistan’s annual fuel consumption.

The smuggling has led to significant financial losses for the Pakistani exchequer, estimated at around $820 million in lost taxes and duties, and has negatively impacted local petroleum businesses.

Daily, around 2,000 vehicles are involved in smuggling barrels of fuel across the border, a practice that has continued despite heightened military tensions between Iran and Pakistan, including reciprocal strikes earlier this year.

The socioeconomic implications of potentially halting the trade are profound, especially for the residents of Balochistan, Pakistan's poorest region, which has been plagued by a violent separatist insurgency.

The report indicates that nearly 2.4 million people in Balochistan depend on this illicit trade for their livelihood, with few other economic opportunities available.

Moreover, the report, leaked to local media, names over 200 individuals involved in the smuggling operations, including government and security officials, highlighting widespread corruption and collusion at border checkpoints.

"The culture of bribes and connivance of [security] officials with smugglers continues at almost all [border checkpoints]," it said.

An official, speaking on condition of anonymity, hinted that the leak of the report might be a strategic move by the government to justify an upcoming crackdown on the smuggling operations. However, skepticism remains about Islamabad's commitment to fully addressing the issue, given past inconsistencies in enforcement efforts.

The scarcity of job opportunities and governmental neglect in the impoverished Sistan-Baluchestan province of Iran are significant factors driving Baluch citizens to engage in fuel smuggling. For many in the border area, selling fuel to Pakistan has become a vital source of income, offering higher returns than the domestic market provides. This trade serves as one of the few available means for residents to earn a livelihood.

Every year, the shooting of fuel smugglers by Iranian military forces results in the deaths of hundreds. Reports indicate that from March 20 to March 30 alone, 27 fuel smugglers lost their lives due to actions by security forces, road accidents, and vehicle fires. The victims were predominantly young, aged between 18 and 28 years old.

In 2023, it was reported that at least 172 Baluch fuel smugglers died, with another 42 sustaining injuries.


Most Viewed

Iran's Revolutionary Guards unveil new underground missile site
1

Iran's Revolutionary Guards unveil new underground missile site

2

US moves aircraft out of second British base over Iran threat - WSJ

3

Iran picks another IRGC general as new Iraq envoy: who is Mesgarian?

4

Iran arrests several in hijab crackdown on popular Tehran street

5
ANALYSIS

Trump’s Iran diplomacy faces a test: Can both sides claim victory?

Banner
Banner
Banner
Banner
Banner
Banner
Banner

Spotlight

  • Trump wants to keep Iran blockade. Can the Persian Gulf sustain the standoff?
    INSIGHT

    Trump wants to keep Iran blockade. Can the Persian Gulf sustain the standoff?

  • Iran state TV debate signals cautious openness to nuclear talks

    Iran state TV debate signals cautious openness to nuclear talks

  • The price Iranians paid for 47 years of revolutionary promises
    ANALYSIS

    The price Iranians paid for 47 years of revolutionary promises

  • Trump’s Iran diplomacy faces a test: Can both sides claim victory?
    ANALYSIS

    Trump’s Iran diplomacy faces a test: Can both sides claim victory?

  • We argued about US midterms until someone mentioned rent
    TEHRAN INSIDER

    We argued about US midterms until someone mentioned rent

  • Oil prices or US prestige? Tehran analysts weigh Trump's next move
    INSIGHT

    Oil prices or US prestige? Tehran analysts weigh Trump's next move

  • Iran acquires oil facilities in China to bypass US sanctions, leaked document shows
    EXCLUSIVE

    Iran acquires oil facilities in China to bypass US sanctions, leaked document shows

  • Iran’s northern routes test the limits of US bid to extend blockade overland
    ANALYSIS

    Iran’s northern routes test the limits of US bid to extend blockade overland