Caretaker Prime Minister Anwaarul Haq Kakar revealed that corrupt local officials facilitated 27,000 vehicles smuggling Iranian oil into Pakistan daily. These vehicles pay a bribe of Rs125,000 to Rs150,000 to the deputy commissioner for safe passage, and this smuggling is a significant financial drain for Pakistan. Despite efforts to curb this illicit activity, smuggling persists, posing a considerable threat to the nation’s economy.
In 2020, a crackdown was initiated against the smuggling of POL (Petroleum, Oil, and Lubricants) products from Iran. As a result, many illegal outlets were sealed, FIRs were lodged, and assets were frozen. Additionally, a 2018 study disclosed a revenue loss of approximately $3.5 billion in duties and taxes due to smuggling.
Government’s Stance & Measures
The military and civil leadership have initiated a more extensive crackdown against smuggling. PM Kakar stated that before recent measures, many perceived the smuggling of Iranian oil as legal. The motive behind the smuggling, especially in Balochistan, is reportedly the high unemployment rate. The prime minister emphasized that he has been taking steps to halt this smuggling, with the military playing a pivotal role.
PM Kakar met Kristalina Georgieva, the Managing Director of the IMF, and discussed Pakistan’s measures against smuggling. Kakar expressed that Pakistan’s motivation for tax reform is genuine and not merely under IMF pressure.
Other Relevant Issues
Questions arose regarding extending the SIFC’s role to areas not explicitly defined in its governing law. While there have been reports of such expansions, no official notification has been released.
Kakar emphasized that the upcoming elections would be transparent and neutral. He dismissed the idea of his government favouring any political party and assured that they were ready to provide funding and security for the elections. Concerning the PTI’s reservations, Kakar stated that no order prevents the PTI from participating in the electoral process.
This revision condenses the information and organizes it under three primary sub-headings to clarify the topic.
