The RCD highway and railway line run through the Pak-Iran border in the Chagai district, facilitating legal business and immigration between the two countries. Taftan hosts the Corridor Gate, Zeropoint, which serves as an entry point.
The annual trade volume between Pakistan and Iran currently stands at $1.05 billion, with both nations aiming to expand this figure by establishing more immigration offices and markets at the border. While Iran is constructing a wall from Taftan to Mand to counter terrorist threats, there are reports suggesting that certain Iranian business circles and economic experts are advocating for its removal in light of the easing of Iran’s sanctions by world powers.
One proposal put forth to the Iranian authorities is the employment of a large number of Baloch individuals on both sides of the border, particularly in the import and export of small goods. Additionally, areas like Mashkil, Mand, and Jiwani, which are close to the Iranian border, rely heavily on border trade for their people’s livelihood.
The livelihoods of many Baloch individuals residing in these border areas are intricately connected to the Iranian oil industry. Informal trade of diesel and petrol has been ongoing between the two nations for several decades. The city of Sorab, located approximately 190 kilometers from Quetta on the road to Karachi, has become synonymous with diesel and petrol smuggling. Vehicles fitted with canisters can be seen along this route, extending from the borders of Lasbela and Sindh to the border town of Hub.
As a result of the diesel and petrol trade in Sorab, numerous petrol pumps have sprung up along the road. These pumps, distinguished by their blue, yellow, orange, and green colors, often appear similar, but regardless of the branding, Iranian oil predominates in this region. The Oil Companies Advisory Committee report reveals that Iran offers discounted rates for oil in its border areas, which is then smuggled into Pakistan. This smuggled petrol from Iran is also commonly available in small-town stores.
While the law permits the establishment of oil depots if no petrol pumps are present within a 10-kilometer radius, the situation in Balochistan is quite the opposite. In comparison to Pakistani company oil, Iranian petrol is cheaper by 15 to 17 rupees per liter. Licensed Pakistani companies earn a profit of one rupee and eight paise per liter, whereas local pump owners save eleven rupees per liter by opting for Iranian petrol.
Given that Balochistan has long grappled with a state of conflict, alternative employment opportunities are scarce. The province has few industrial centers, factories, or industries capable of employing the vast number of unemployed youth. During Musharraf’s tenure, the transportation of Iranian oil was temporarily halted, which subsequently led to a surge in robberies and unrest along the Quetta-Karachi highway. This indicates that when employment opportunities dwindle, impoverished individuals may resort to criminal activities.
Recently, the Chief Minister of Balochistan announced a complete ban on the Iranian oil trade in the province during a visit to Hub. This raises concerns about the alternate employment prospects for the local population. Are there plans to establish factories in the area? Balochistan’s mineral wealth and the future prospects of the China-Pakistan Economic Corridor (CPEC) hold promise for providing locals with their rightful opportunities. To abruptly shut down such a significant industry without proper planning is akin to economically depriving the people.
While the government machinery struggles to provide public sector jobs to the millions of unemployed youth, the solution lies in promoting small-scale business ventures. According to the United Nations Development Program’s recent multidimensional index survey, around two-thirds of Balochistan’s population faces pervasive poverty. The report also highlights that approximately 71% of the province’s residents live below the poverty line. It is imperative to formalize and legalize the Iranian oil trade through a proper agreement with Iran to effectively address unemployment in Balochistan.
The writer is a teacher at DELTA, The Change Agent. He can be reached at aminwastoo@gmail.com.