ISLAMABAD: Pakistan’s western borders with Afghanistan and Iran have long been conduits for illicit trade, including arms, fuel, and drugs, which provide essential funding for militant groups, sustaining insurgent activities in regions such as Balochistan and the tribal belt of Khyber Pakhtunkhwa.
Goods ranging from Iranian petroleum products to narcotics and modern weaponry are transported through these informal routes. Intelligence reports indicate that militant groups impose taxes on smugglers in exchange for safe passage.
A senior security official responsible for preventing smuggling at the border acknowledges that smuggling of Iranian diesel and other oil products is a serious issue.
“Smuggling of Iranian diesel and other oil products is an issue that requires additional preventive measures, such as establishing more border points, improving infrastructure, deploying additional enforcement staff, and strengthening intelligence-sharing mechanisms,” he remarks.
Smuggling is obviously a serious issue, and it constitutes a significant chunk of 40 per cent of the informal economy. It has remained the lifeline of many anti-social, anti-state groups, he reveals to WE News English, requesting anonymity.
The official highlights that smuggling remains the financial backbone of various anti-state groups. However, he emphasises, long, porous borders, well-armed smuggling cartels, and challenging geographical terrain make effective enforcement difficult.
It is very difficult. That is why it is a challenge not only here [in Pakistan] but also elsewhere in the world, like in the Mexico-US border. This is a serious, chronic issue.
However, over the last several decades, Pakistan has been addressing this issue systematically and consistently. For example, previously there was no fencing on the border. Now we have a proper fence at the Pak-Afghan border. “Now we’ve a proper fence at the Pak-Afghan border, which has closed some doors, but others remain wide open,” he explains.
The US-left quagmire
A significant portion of the weaponry used by insurgent groups in Pakistan originates from Afghanistan. Following the Taliban’s return to power in 2021, vast stockpiles of US-made arms—including M16 and M4 rifles, anti-tank missiles, and drones—fell into the hands of non-state actors.
A report the US Department of Defense (Pentagon) submitted to the Congress in 2022 states that approximately $7 billion worth of military equipment was left behind after the US withdrawal in August 2022.
This included 78 aircraft, 40,000 military vehicles, and over 300,000 weapons. The Taliban’s acquisition of this arsenal has raised concerns about the potential use of these weapons in regional conflicts.
These weapons have appeared in militant attacks across Balochistan and the tribal districts. Recent incidents highlight this trend. In January 2024, an attack on a convoy of Chinese engineers in Balochistan involved sophisticated rocket systems. In March 2024, a drone strike targeted a paramilitary checkpoint in Chaman, while another assault in April saw the use of advanced grenade launchers against security forces in Panjgur.
The financial engine
Beyond arms smuggling, the illicit fuel trade plays a major role in sustaining militant groups. Each day, an estimated 100,000 litres of Iranian petrol is illegally transported into Pakistan, with insurgents charging transporters for passage.
The same networks facilitate the movement of drugs and human trafficking operations, generating billions in illicit revenue.
A district administration official in Quetta tells WE News English that some prominent people are involved in fuel smuggling. Moreover, the Balochistan Liberation Army (BLA) collects taxes from coal mine contractors, while smugglers are also required to pay extortion fees.
Both drug and fuel smugglers are forced to pay extortion. Even government contractors are forced to pay extortion money. If a contractor’s work is running smoothly without any attacks, it is likely that he is paying extortion fees, he discloses.
Likewise, a senior Counter-Terrorism Department officer says that the BLA collects billions of rupees annually in extortion from fuel smugglers, coal contractors, and other business operators. Those who refuse to pay, face violent retribution, including burning of their trucks.
Currently, two major groups, the BLA and the Balochistan Liberation Front (BLF), operate in Sibi, Dera Bugti, Kohlu, Nasirabad, and Hub, extending to Quetta. He says that the black market is alive and kicking as thousands of vehicles smuggled through Iran are also in circulation.
Unified anti-smuggling efforts
Pakistan has periodically launched anti-smuggling operations, pledging stricter border management and surveillance. Border fencing on the Pakistan-Afghanistan border has significantly reduced smuggling. However, avenues for illicit trade remain, including through authorised customs stations, airports, seaports, and the marine coastal belt.
According to the border security official, authorities have improved enforcement by establishing new customs collectorates, enhancing inter-agency coordination, and recruiting and training personnel.
He underscores that digitalisation and automation of customs procedures, along with infrastructure projects like the border management system in Torkham and Ghulam Khan, are also aimed at curbing smuggling.
As border smuggling continues to fund insurgency, analysts warn that failure to curb these illegal flows could further destabilise Pakistan’s security landscape, particularly in its restive western regions.
The border security official stresses that Pakistan has also strengthened enforcement by establishing new collectorates and enhancing recruitment efforts. Staff has been recruited and provided both in-service and initial training by the army, from police, from Frontier Corps (FC), he explains.
We’ve have also improved inter-agency coordination. There is now much better coordination between FC, army, police, intelligence agencies and customs, he explains.
With better digitalisation and automation of the customs procedures and simplification of procedures, the government hopes to turn the tide against smuggling.
