In recent months, Pakistan has intensified efforts to curb smuggling along its borders. This is especially true in Balochistan, where informal trade has long supported local communities.
The government has decided to impose a one-document regime at the Chaman and Torkham border crossings. There is also increased strictness at the Iran-Balochistan border. This marks a significant shift in Pakistan’s trade and security policies.
While these measures have succeeded, challenges remain in transitioning informal traders to the formal economy.
Reducing Smuggling Losses
Pakistan faces an estimated $23 billion annual loss due to smuggling, a significant drain on the national economy. The enforcement of strict border regulations aims to combat this issue by reducing the flow of illicit goods.
Before the crackdown, an estimated 20.5 million liters of Iranian fuel was being smuggled into Pakistan daily. However, following the stringent measures implemented by authorities, the inflow of illicit fuel has dropped to 4.5 million liters per day, marking a 78% reduction—a significant achievement in curbing cross-border smuggling.
According to government sources, the seizure of smuggled commodities has already led to an estimated Rs. 2.25 billion worth of goods being recovered in recent months.
Strengthening Border Control
Beyond economic concerns, Pakistan’s smuggling problem has had profound security implications. The unchecked movement of goods and people across porous borders has facilitated the trafficking of drugs, weapons, and financing to terrorist organizations like The Baloch Liberation Army and BLF in Balochistan.
Read More: Crackdown on Non-custom paid vehicles in Balochistan, 50 vehicles seized
By enforcing stricter documentation requirements, authorities have made it harder for unauthorized individuals and illicit trade networks to operate, thereby disrupting the financing system of terrorist groups in the province.
The Pakistan Armed Forces, law enforcement agencies, and the Excise Department have launched joint operations to clamp down on smuggling rings, particularly in Balochistan.
Reports indicate these measures have significantly disrupted traditional smuggling routes, making illegal cross-border trade more difficult.
While the crackdown has disrupted illicit networks, it has also triggered protests in Balochistan, particularly along the Iran-Pakistan border. Individuals financed by smugglers are allegedly manipulating these protests.
According to local authorities, Baloch Yakjehti Committee (BYC) and Gwadar’s MPA Maulana Hidyat Ur Rehman are staunch supporters of the smuggling mafia.
An official stated, “There is a pattern to these protests by the smuggling mafia. Whenever we initiate a crackdown, Maulana Hidyat Ur Rehman and BYC come to their rescue, making it difficult for us to carry out operations.”
Additionally, corruption within enforcement agencies remains a challenge. Pakistan’s Interior Minister Sarfraz Bugti recently acknowledged that some levies personnel have been complicit in cross-border smuggling, further complicating the transition process.
Balancing Enforcement with Economic Reform
While Pakistan’s border policies have entered a new era of strict regulation, the government has taken multiple steps to ensure the welfare of the people at the Chaman border. These include establishing a Passport Office, taxi stands, and markets, reducing passport fees, and providing free rations to deserving people.
Afghanistan’s imports under transit trade with Pakistan have also significantly declined. In July and August, the annual Afghan transit trade dropped 84%, amounting to Rs 19.11 million compared to Rs 122.88 million during the same period last year.
According to sources, the government has taken strong measures to control smuggling under the guise of transit trade. These efforts are now showing positive results.
Government sources report that in the fiscal year 2023-24, the volume of Afghan transit trade was 2.888 billion. In comparison, it was 7.095 billion in the fiscal year 2022-23.
The imposition of the one-document regime is expected to transform Chaman. It aims to make Chaman a border trade hub instead of a smuggling trade hub.
Pakistan’s battle against smuggling is far from over. While authorities have made significant progress in securing borders and recovering lost revenue, they need to do more. The government must now focus on ensuring that the reform process does not leave border communities behind.
