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A metalled but badly battered road from the Iranian border to Karachi does bring to one's mind the remains of a people-friendly Regional Co-operation for Development (RCD) between Turkey, Iran and Pakistan. Karachiites were especially excited when this highway was built. It was going to bring prosperity through trade and commerce; it was also going to launch cheap tourism to the two countries with which Pakistanis have a strong cultural, emotional and historic link.
It was discouraged by the powers that be who felt threatened that such co-operation would reduce their importance and our dependence on their financial handouts. Perhaps you have noted that Pakistan is not just a poor underdeveloped country but it has been made to stay that way by the policies of the super power and other big international meddlers.
So the road ultimately became a smuggler's highway. Everyone knew its nefarious status but turned a blind eye. They include not only the people who profited from smuggling, but also the Customs officials, the Police, the governments of Balochistan and Sindh. What is smuggled from Iran? The list is quite long. Plastic dinner sets, tinned fruit, hand-painted pictures of Omar Khayyam and his beloved which were/are very popular here, motorcycles, dates, pista, glassware and, last but not least, petrol and diesel. There are many other Iranian smuggled goods available in Karachi, but these are the most popular items.
Last Saturday's accident involving two passenger coaches which rammed into an overturned truck on the RCD Highway near Hub, and caused the death of 36 persons, exposed oil smuggling to be the number one item these days. This because the dead were burnt to death so completely that it was impossible to identify them. Even after three days only 30 victims were identified. It is alleged there was petrol in the truck as well as petrol or diesel in one or both passenger coaches. The impact caused the inflammable material to ignite at such speed that bodies were charred as none could make their escape from the inferno. Two drivers also died. One survived but has disappeared.
Karachi is the main consumer of smuggled oil products. It also serves as a depot from where the petrol and diesel is supplied to other cities and towns of the province and parts of southern Punjab. The massive increase in oil and diesel smuggling corresponds with the increase in price by the oil marketing companies (OMC) luring people to buy the cheaper smuggled products. Petrol is Rs 8 per litre less than the OMC price, while diesel is Rs 12 per litre less.
An idea of the massive smuggling can be gauged from the huge revenue loss to the national exchequer, which is around Rs 40-50 million per day in Sindh. The customers are poor struggling taxi and rickshaw owners and fisherfolk who purchase the cheaper feul for operating their motorboats. The authorities are pointing a finger at the smugglers and the customers who patronise them. Does anyone hold the OMC responsible? It is their exorbitant price of legal petrol and diesel that is really behind the massive increase in oil smuggling.
You can tell who are the customers from the 'dubba' stations, which are simply oil tins piled up on the roadside. There used to be about 150-200 dubba stations in the city a few years ago, said the chairman of Pakistan Petroleum Dealers Association (PPDA) Abdul Sami Khan. Today their number is more than 500. A similar increase of outlets is noted at sea where there are barges which function as petrol and diesel stations. Some 18 barges were registered by the Pakistan State Oil (PSO) and issued licenses. Today there are 50 barges. Of the 18 registered barges only nine receive petroleum from the PSO, but all 50 barges are flourishing.
Petroleum products are smuggled by land from Iran and by sea from Muscat and Dubai. The Muscat and Dubai based cargo boat operators are allowed to carry diesel for operating the boats, but they allegedly smuggle 100,000 litres for sale to Karachi's fisherfolk.
The smuggling will not end because nobody really wants it to. According to the PPDA chairman atleast 20 FIRs were filed in various police stations of Karachi against dubba stations. He complains because he feels the pinch. But maybe the PPDA as a whole is pretending to be pious. It is quite possible some of the members may also be profiting from smuggling, as a sideline. Otherwise why only 20 FIRs when there are more than 500 dubba stations in Karachi? Equally interesting is the statement of the senior vice-president Balochistan Petroleum Dealers Association (BPDA). He said Balochistan government has started a crackdown against transporters using passenger buses to transport smuggled petroleum products. As I read it, he seems to be saying only passenger buses may not be used for smuggling petrol and diesel. Does it mean it is alright to use oil tankers for smuggling?
It is no secret that smuggling operations involve officialdom as well as politicians, gangsters, transporters. Who can tell for certain that the people who are protesting about illegal supply of petrol and diesel are not themselves involved? It sounds ridiculous but this illegal business allows poor taxi and rickshaw drivers as well as fisherfolk to earn an honest living. Even if you are not one of the bad guys, I think, like me, you must be in favour of this smuggling. I only put down my foot when it comes to drug smuggling. What about you?

Copyright Business Recorder, 2014

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