Key facts
- Thousands of individuals in Pakistan's Balochistan province are involved in smuggling fuel from Iran.
- The smuggling operations have increased due to higher fuel prices caused by disruptions in oil flows through the Strait of Hormuz.
- Smugglers face extreme heat, with temperatures reaching up to 50C, and risks of fire and explosion.
- A leaked intelligence report estimates annual fuel smuggling from Iran to Pakistan at $1bn.
- Official petroleum sales in Pakistan have hit a 27-year low, partly attributed to the rise in smuggling.
- Many turn to smuggling due to a lack of alternative employment opportunities in the impoverished region.
In Pakistan's vast and impoverished Balochistan province, a dangerous trade in smuggled Iranian fuel is flourishing, driven by global oil price surges and a lack of local economic opportunities. Bikers like Mazaar, whose name has been changed for his safety, navigate extreme heat, potentially reaching 50C, and the constant risk of their overloaded motorbikes catching fire or exploding.
Mazaar transports five 70-litre canisters of petrol, totaling around 272kg, purchased from open-air markets in Mastung. These markets receive fuel smuggled across the border from Iran, a practice that has intensified amid the US-Israeli conflict impacting oil flows through the Strait of Hormuz. The demand for cheaper Iranian fuel in Pakistan has consequently risen.
This perilous journey, often spanning 350km to the neighboring Sindh province, is undertaken by thousands of smugglers. They are motivated by economic desperation, with many, like Mazaar, having abandoned farming due to drought, or like Irfan, facing limitations due to disability. Fida Hussain Dashti, former president of the Quetta Chamber of Commerce and Industry, highlights that fuel smuggling is a vital economic lifeline in a region with scarce employment, where even university graduates are drawn into the trade.
A leaked report from Pakistan's intelligence agencies suggests that fuel worth $1bn is smuggled annually from Iran, impacting official sales which have hit a 27-year low. The Oil Companies Advisory Council has urged government intervention. While Iran blames criminal groups, analysts suggest links to the IRGC aiming to circumvent sanctions and profit from rising prices.
Pakistan's government denies official involvement, stating that Prime Minister Shehbaz Sharif has ordered a crackdown, leading to seizures of fuel worth approximately 1.3 billion Pakistani rupees ($5m) in the past year. However, the remote border and alleged corruption complicate enforcement. Smugglers report that while their costs have increased due to the war, their earnings have fallen, with Mazaar's daily income dropping from 5,000 to 3,000 rupees.