Caretaker Prime Minister Anwaarul Haq Kakar brought to light a critical issue plaguing Pakistan—the daily influx of 27,000 vehicles smuggling Iranian oil. This disclosure not only points to the magnitude of the problem but also exposes a concerning collaboration between smugglers and local officials.

Iranian Oil Smuggling

PM Kakar shared in an informal interaction with the media that smuggled Iranian oil was making its way into Pakistan daily, facilitated by bribes ranging from Rs. 125,000 to Rs. 150,000 per vehicle, paid to the deputy commissioner. The alarming twist is that those instrumental in these postings were reportedly receiving shares as well.

Existential Threat to Pakistan

Describing the situation as an “existential threat to Pakistan,” the PM emphasized the need for a crackdown. He highlighted that if not addressed, smuggling and illegal currency trade could have pushed the rupee-dollar exchange rate beyond Rs. 350.

PM Kakar pointed out that unemployment in Balochistan was exploited to shield and promote smuggling. Deliberate vacancies in government positions were seen as a strategy to justify the continuation of smuggling in the region.

Decisive Crackdown

The military and civil leadership jointly launched a comprehensive campaign against smuggling. This crackdown, the second in three years, aimed at curbing the illegal movement of Iranian oil into Pakistan. The PM credited the military for playing a significant role in this operation.

Past Efforts

It’s worth noting that in 2020, the government initiated a crackdown against the smuggling of petroleum, oil, and lubricants (POL) products from Iran, amounting to an estimated US$2 billion annually. Previous efforts included sealing illegal POL retail outlets, filing FIRs, and moving applications for asset freezing.

A 2018 customs department study revealed a staggering revenue loss of about $3.5 billion in duties and taxes due to smuggling in just 11 commodities, underscoring the gravity of the issue.

The recent revelations by PM Kakar shed light on the intricate web of smuggling that poses a serious threat to Pakistan’s economic stability. The ongoing crackdown signifies a decisive effort to address this longstanding challenge.