Iranian oil Smuggling

 Iranian Oil

Iran holds some of the world’s largest deposits of proved oil and natural gas reserves, Iran ranked as the world’s 3rd largest oil and 2nd-largest natural gas reserve holder in 2021.By the end of 2021, Iran accounted for 24% of oil reserves in the Middle East and 12% in the world. 

Iran's crude oil production dropped to lowest in 2020 due to under investment and US lead west sanctions. Further the Covid Pandemic damaged the oil supply.

Iran is one of the largest producer of oil and gas and Pakistan relay on oil imports heavily. Any Increase in the price of oil in international market bring a new wave of inflation for the Country. 

But due to US sanctions, Pak-Saudi relations and Low grade Iranian oil Pakistan do not import directly but Iranian oil is smuggled to Pakistan from South and north Balochistan's border.

Reasons Of Oil Smuggling 

Iranian Oil is Smuggled into Pakistan trough borders. 

The people of balochistan have very few job opportunities, low educational system and little business activity. So they turned to this smuggling business. Around 2 million jobs are created by smuggling of oil and it's associated activities.

Routes

From south oil is transported trough ships because of the low cost and high volume that can be transported.

From north the oil is transported by Bikes, Cars and Donkeys

Government's Role

Oil smuggling, transport and selling is a very costly business and a hefty amount is required to set up the business because of witch politicians, bureaucracy and elite class are involved in the business and Gov can not lay hand on them.

People of  Balochistan have very few opportunities and the Oil smuggling has created 2 Million jobs for the people.

Iranian oil quality is below the world standard and the cost only differs by 20 to 40 rupees.

US has sanctioned Iran and Gov do not want any unwanted attention because of  media hype that can make already worse conditions more worse.