Pakistan's Hidden Oil Trade Exposed: A $1 Billion Scandal

Pakistan's 560-mile border with Iran has raised questions about the illicit oil trade. Despite the closure of the Strait of Hormuz, an estimated five to six million liters of Iranian oil enter Pakistan daily. The annual value of this trade is over $1 billion, according to a Pakistani intelligence report.

The operation is concentrated in impoverished Balochistan, where Iranian fuel is significantly cheaper due to subsidies. Trucks and vehicles carry the fuel across remote routes before being distributed through a network of dealers and middlemen inside Pakistan.

A Pakistani investigation found government officials, politicians, and even vehicles associated with Pakistan State Oil were allegedly involved in transporting or facilitating smuggled Iranian petroleum.

The majority of Iran's exported petroleum goes to Chinese refineries, not Pakistan. China buys around 1.4 to 1.6 million barrels of Iranian oil daily, often disguised through front companies and ship-to-ship transfers.