The Gwadar-Panjgur Highway, also known as M-8 | White Star
Balochistan is now the largest market of non-duty-paid, i.e. smuggled, vehicles in Pakistan along with the tribal districts of Khyber Pakhtunkhwa. There are approximately 35 truckable and 250 unfrequented routes along these borders. The remoteness of these areas and the government’s inability to provide efficient governance drive the local population to engage in illegal trade and smuggling activities.
The most prominent feature of southern Balochistan highways are the blue Iranian pick-up trucks known locally as Zamyads. Their presence shows how the new highways have given a boost to the scale of the informal economy in the province. Mostly non-custom paid, these Zamyads are solely used for oil and diesel smuggling in Balochistan as well the illegal transport of other Iranian goods such as cooking oil and soap. Loaded with blue barrels in the back, they can be spotted across the province. The M-8 highway has made it easy to access the Iranian border towns as a significant portion of the highway passes near the border.
Zamyads can be seen on both sides of the road, giving the impression that they rule the highway. They can also be seen plying the deserts and hilly terrains. The drivers of these vehicles follow the more familiar roads to avoid certain police checkposts.
“Iran seems to be the major beneficiary of the highway, as it has expanded its outreach of Iranian oil and goods in Balochistan,” says journalist Shahzada Zulfiqar lightheartedly. But this is evident in every town in Balochistan where Iranian goods and oil have captured the whole market. “This is equally beneficial for both of us,” says a grocery store owner in Panjgur. “Iran needs cash and people need easy access to necessities.”
Apart from the Frontier Corps (FC) and the customs department, the Levies and police personnel have also established checkposts on major highways of Balochistan from where Zamyads pass to reach their destinations. At times, the provincial government bans the smuggling of oil. The smugglers often complain that they have to pay half of their income at different security checkposts and to Arbabs. A story published earlier in this very magazine, elaborated the role of the Arbab: “The Arbab are Baloch on both sides of the Pak-Iran border who are in direct contact with each other. When a Pakistani Arbab receives an order through his Iranian counterpart, he sends his Zamyads to the border. The Pakistani Arbab can make around 40,000 rupees off one truck full of oil or diesel.”
From time to time, the government imposes a ban on the illegal trade of oil and groceries, but a large population depends on these goods. In September 2018, transporters and the local population launched protests against one such ban. News of the fencing of the Pak-Iran border by Pakistan due to security reasons also caused panic among the local population. However, the government is also aware that fencing of the entire border is not feasible because of the difficult topography of the area. Security institutions have started fencing a few critical parts of the border that have been exploited by militants and insurgents. If fencing is scaled up, it could cause further migration towards urban centres as most of the villagers living on the border will find it difficult to survive in the absence of border trade and smuggling.
Though the highways have caused an increase in illegal trade from Iran, they have simultaneously also boosted economic activity and helped reduce the crime rate and the appeal of militant and insurgent groups among the youth. This impact can be felt not only in the towns situated near the highways but in the whole of southern and southwestern Balochistan and northern Sindh.
Even in central Balochistan, Mastung city is one of the beneficiaries of this changing socioeconomic landscape. Once facing a high crime rate and violence by Baloch insurgents as well as religious and sectarian-oriented violent groups, Mastung is currently experiencing relative calm mainly due to what locals describe as “busy, money-making youths.”
Money has also brought prosperity. “Even the architecture of houses is changing,” says Adeel Baloch, a student at Balochistan University from Mastung. “Even in small towns and villages, mud houses are transforming into ones made with bricks and concrete.”
While the new highways in Balochistan have helped the informal economy and illegal trade flourish, the volume of formal trade has failed to enhance and security fears still bar businessmen and investors from other parts of the country from investing here.
On the Iranian border at Taftan, the trade balance remains in Iran’s favour. Pakistan exports mainly rice and seasonal fruits while imports from Iran include liquefied petroleum gas (LPG), tiles, dates, scrap and cement, etc. In Taftan city, hundreds of tankers can be seen bringing LPG from Iran where it is shifted to Pakistani tankers. A majority of these tankers are headed towards Punjab. In the winters, this business expands due to the shortage of gas in the country.
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