Pakistan has implemented a range of stringent measures to combat smuggling, including tackling the illegal import of oil supplies from Iran, resulting in a 340% increase in legal trade. Despite the government’s efforts to curb smuggling, concerns have been raised by the domestic oil industry, which reports a resurgence of illegal trade.
According to a news report, in a recent cabinet meeting, the interior and narcotics secretary outlined the anti-smuggling actions taken over the past year. These measures included the establishment of 56 joint check posts, the digitization of petrol pumps, vehicle tracking systems for Iranian oil, and the construction of a sea barrier at Jiwani.
Additionally, a seafront task force under the Pakistan Maritime Security Agency was formed, and 35 digital enforcement stations are being set up. The secretary reported that these efforts had led to a 340.8% increase in legal imports across various categories, signifying a substantial rise in documented trade.
However, despite these achievements, the Oil Companies Advisory Council (OCAC) sent a letter to the Director of Customs Intelligence at the Federal Board of Revenue (FBR), expressing concerns over the rising smuggling of Iranian oil.
The OCAC highlighted a decline in petroleum product sales and significant revenue losses due to the renewed illegal trade. The OCAC reported a 6% drop in high-speed diesel sales to 419,494 metric tons in February 2025, compared to 445,263 metric tons in the same month last year.
Preliminary data indicates that motor spirit sales in March 2025 will be 5% lower than the previous year, with significant declines in planned sales for both motor spirit and high-speed diesel, despite the agricultural planting season.
Reports also suggest that adulterated motor spirit is being sold for Rs160 per litre, well below the regulated price of Rs255.63 per litre, further exacerbating the situation.
This illegal trade is not only disrupting legitimate businesses but also causing an estimated revenue loss of Rs1.5 billion per day for the government.
In light of these challenges, the OCAC has urged the FBR to intensify efforts to shut down illegal retail sites, implement stricter border controls, and reduce the import of white spirit, often used as an adulterant in high-speed diesel. These measures, they say, could add 4,000-8,000 metric tons of fuel to the economy daily.
