QUETTA: Sensitive agencies have initiated investigations into the involvement of officers and officials in fuel smuggling.
Iranian POL products, including diesel and petrol (commonly referred to as Iranian oil), are surreptitiously making their way into Pakistan through unfrequented routes in the Makran and Rakhshan divisions. Annually, an estimated 2.8 billion liters of Iranian oil are smuggled, resulting in a staggering loss of at least Rs. 227 billion.
According to a report prepared by a sensitive agency, in 2023, the smuggling reached its peak, with approximately 10.1 million liters per day entering Pakistan. However, a crackdown by the caretaker government reduced this to 5-5.3 million liters per day. Unfortunately, after the 2024 General Elections, Iranian oil smuggling has resurged to an estimated 8.9 million liters daily.
A whopping 95% of the smuggled Iranian oil operates under an informal system known as “Token” or “Parchi.” This system, established in 2021 by Frontier Corps (FC) and local administration in Makran and Rakshan districts, involves Zambad vehicles and boats transporting the oil across the border.
Once inside Pakistan, the smuggled oil is stockpiled in underground storage facilities located in Gwadar, Panjgur, Mashkhail (Washuk), Chaghi, and Quetta. From there, it is distributed across the country.
Approximately 45% of the smuggled Iranian oil finds its way to Sindh, while 25% goes to both Punjab and Khyber Pakhtunkhwa (KP). The remaining portion is consumed within Balochistan.
The financial transactions associated with Iranian oil smuggling are intricate:
– Bulk Deals: Payments in USD are often routed through third countries. Hawala/Hundi dealers in Pakistan receive payments, which are then confirmed abroad before oil delivery.
– Small Supplies: Iranian suppliers are paid in Tuman at the borders by Pakistani buyers.
– Barter Trade: A minor share (3-5%) involves barter arrangements.
– Cash and In-Kind Payments: Hand-to-hand cash exchanges and even payments in gold bullion are used.
An estimated 2.2 to 2.4 million people in Balochistan depend on Iranian oil smuggling for their livelihoods. Balochis in the terrorism-hit southern Balochistan region are deeply involved in the sale and purchase of smuggled oil. Additionally, militant and terrorist groups operating in Makran and Rakshan divisions reportedly receive a share of the profits from this illicit trade.
The smuggling operation wouldn’t be possible without the collusion of unscrupulous officials at various check-posts. Hundreds of oil tankers carrying millions of liters of Iranian oil cross Uthal in District Lasbella, en route to Sindh (Karachi), passing through these checkpoints.
According to the report, several officers and officials are involved in this dirty business. Here is the list:
