IMF Raises Alarm on Petroleum Product Smuggling in Pakistan

The International Monetary Fund (IMF) has raised alarms about the rampant smuggling of petroleum products in Pakistan, requesting information from the Finance Ministry and the Federal Board of Revenue (FBR) on the measures to curtail this issue.

According to FBR insiders, the nation has incurred over $10 billion in losses due to untaxed and unlevied petroleum product smuggling. The IMF is pressing to cease the illicit transfer of about 143 million litres of petroleum products monthly and demands an update on the actions undertaken to prevent this criminal activity.

Recently, alarming details emerged in a sensitive agency’s report regarding the influx of smuggled Iranian oil, approximating 10 million litres monthly, into Pakistani border regions, including Rakhni and Loralai. These oil shipments facilitated through bribes to Border Military Police, travel conveniently via unchecked motorways, subsequently mixed with local supplies, resulting in a substantial economic drain, with billions in monthly losses reported.

A supplementary report dispatched to the Prime Minister’s office last week divulged extensive details about the Iranian oil smuggling nexus and the associated illegal money transfer businesses (hawala/hundi) flourishing in the country, implicating numerous currency dealers across various regions.

This comprehensive revelation, highlighting an annual transfer of 2.81 billion litres of oil from Iran to Pakistan, causing yearly losses exceeding Rs60 billion, has been brought to the attention of the Prime Minister’s House, including particulars of all individuals and entities involved in this unlawful trade.

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