GILGIT-BALTISTAN: The picturesque region of Gilgit-Baltistan is grappling with a growing reputation as a hub for smuggling operations, where elaborate schemes and systemic loopholes have facilitated illicit trade, including mobile phones and Chinese-origin cloth. Officials face accusations of complicity in perpetuating these activities.

Sources reveal that smugglers exploit Customs loopholes by disguising high-duty goods as low-duty items. For instance, containers allegedly packed with walnuts—attracting a duty of PKR 3 million—are found carrying fabric that incurs taxes tenfold higher. Insiders claim certain Customs officers are deliberately placed in Gilgit-Baltistan to ensure smooth operations for these illicit channels.

At the heart of these operations is the Khunjerab Pass, a key route for mobile phone smuggling. Locals, granted temporary border permits for limited trade, reportedly bring large volumes of phones into Pakistan without Customs checks along the 92-kilometer stretch between Khunjerab and Sust dry port. The absence of Customs oversight along this route has compounded the problem.

Adding to the complexity is the alleged misuse of vehicles belonging to KSF, the border force, to smuggle mobile phones. These secure vehicles are reportedly part of a smuggling system orchestrated by a figure known as “Haji Sahab,” a prominent importer and clearing agent. Smuggling practices also include vague seizure reports that omit make and model details, preventing proper accountability.

In a recent incident on March 30, 2025, two Customs officials were involved in a vehicle accident near Bisham. The police recovered 210 mobile phones and other items, sparking controversy. Allegations emerged that these items were part of a previously confiscated batch of 17,613 phones worth PKR 500 million. However, a recount confirmed the seized phones were intact.

Investigations have implicated Upper Division Clerk (UDC) Muhammad Abu Bakar, whose brother Abdur Rehman is reportedly active in the smuggling trade. Abu Bakar allegedly acted as a carrier for smuggled goods and retrieved phones from the police with the help of his brother. The UDC has been served a show-cause notice for dismissal, and an FIR has been lodged against him and his brother.

The involvement of Appraising Officer Hafiz Muhammad Nazim Butt, who sustained critical injuries in the accident, remains unclear. Further inquiry will determine his role in the smuggling network.

Despite enforcement efforts, systemic gaps and alleged collusion within Customs have allowed smuggling operations to thrive unchecked, undermining revenue collection and border security in the region. Authorities face mounting pressure to dismantle the entrenched networks and restore integrity to Customs operations.