Smuggling of dollar, Iranian oil across western border is crashing Pakistan's economy
Business
Khyber Pakhtunkhwa, Balochistan have a high number of currency dealers involved in hawala hundi
ISLAMABAD/LAHORE (Web Desk) – Caretaker Interior Minister Sarfraz Ahmed Bugti on Sunday promised zero tolerance policy to curb smuggling of US dollars, sugar, fertilizer and petroleum products, as Pakistan may witness another hike in fuel prices amid the illegal movement of Iranian oil across the border which is causing a loss of billions of rupees to national exchequer.
But the biggest challenge is the currency market with transfer of dollars through “hawala hundi” and smuggling of greenback across the Pakistan-Afghan border have caused its shortage while also fuelling the exchange rate to record-high levels in recent weeks.
The extent of black marketing or hoarding can be gauged by the fact that the rupee has appreciated by around Rs30 in open market last week after the government just hinted at controlling the illegal trading.
A report submitted to the Prime Minister’s Office says 722 currency dealers are involved in ‘hawala hundi’ business with 205 of them based in Punjab – certainly not a surprise given a large number of expats from Gujranwala, Gujrat and surrounding areas being in Western countries with most human smuggling cases also originating from the same region.
Khyber Pakhtunkhwa – for being the centre of dollar smuggling to Afghanistan – is second placed on the list with 183 such dealers.
And despite being sparsely-populated, Balochistan has 183 currency dealers dealing in hawala and hundi because of the lucrative business of smuggling dollars across Pak-Afghan border.
The number of dealers for other regions are: Sindh 176, Azad Kashmir 37 and Islamabad 17.
As for as the Iranian oil is concerned, the report also mentions that it is a big source of terror financing as well – a business in which 90 government officials and 29 politicians have also reportedly been involved.
Meanwhile, the retail business of smuggled Iranian oil isn’t a problem as 995 filling stations across the country are also associated with the business.
But perhaps most startling part of the report is the fact that the Pakistan State Oil (PSO) vehicles are helping in transporting the smuggled fuel.
On the other hand, no exact figures about the size and scope of fertilizer smuggling while it was earlier reported that the sugar price had enabled the millers, traders and hoarders extract around Rs55 billion so far from consumers.
A stay order issued by the Lahore High Court on August 15 barred the provincial government from monitoring the sugar supply chain, which is incentivizing smuggling to Afghanistan.
