The report, submitted to the Ministry of Petroleum on Thursday, sheds light on the alarming escalation of this illicit activity. “There was a significant reduction in this illegal trade during the caretaker government, but after the recent general elections (held in February 2024), illegitimate trade has now escalated by a staggering 67%,” the report stated.
A troubling connection between militant groups in the country’s southwestern Balochistan province and the profits generated from oil smuggling was also revealed in the report. It suggests that banned Baloch-armed organizations operating in the restive region, including the Baloch Liberation Army (BLA) and Baloch Liberation Front (BLF), are directly involved in this unlawful oil trade.
According to the report, Balochistan’s thriving underground smuggling operation spans six land and sea routes across five districts. An estimated 90,000 liters of Iranian oil are smuggled daily, and around 70% of this oil makes its way to consumption hubs in Pakistan’s three other major provinces.
Smuggling and the economic fallout
The report states that “2.8 billion liters of Iranian oil, including diesel and petrol, are smuggled into Pakistan annually. This rampant smuggling has resulted in a staggering loss of at least 227 billion rupees [an estimated $816 million] to the national treasury.” READ MORE
