Pakistan's Secret Oil Trade with Iran Exposed

Pakistan's relationship with Iran is complex and multifaceted. While Islamabad has often been described as an ally, there are indications that the country may be involved in illicit oil trade with Tehran.

The scale of this operation is significant, with estimates suggesting that up to five to six million liters of Iranian oil entered Pakistan illegally in 2024 alone, valued at over $1 billion annually. Pakistani officials have acknowledged these numbers, but also claim that military and law enforcement efforts have reduced the flow of smuggled fuel.

The trade is concentrated in the impoverished province of Balochistan, where Iranian gasoline and diesel are cheaper due to Tehran's subsidies. Fuel is transported across remote deserts and mountain routes by trucks, pickup vehicles, and even motorbikes, before being distributed through a network of dealers and middlemen inside Pakistan.

What is more disturbing is the alleged involvement of government officials, politicians, and even those associated with Pakistan State Oil in transporting or facilitating smuggled Iranian petroleum. While this does not necessarily suggest that Islamabad has adopted a policy of helping Tehran evade American sanctions, it does demonstrate how deeply the trade has penetrated Pakistan's political and security establishment.