Smuggling of goods from Iran to Pakistan has been on the rise for the last many years despite the fact that the Pakistan Customs and other law enforcement agencies have stepped up their efforts to stop this menace. Millions of liters Iranian oil and diesel is seized everyday but there is no letup in the activity. Smuggling is the world phenomenon and even the United States could not plug the loopholes to stop human and goods smuggling from Mexico. Illegal trade not only deprives the nation of duties and taxes, but also adversely affects and discourage the legal trade as the prices of smuggled goods are far lower than that of the goods legally imported. The illegal transportation of goods also keeps the government departments busy in curbing the crime instead of utilizing the official machinery for better purpose. However, this is one part of the situation. The other part relates to the government which has failed to devise policies to enhance trade cooperation with Iran which is our immediate neighbour and both the countries are bound by cultural, religious and historic relations. Iran is not only an emerging military power, but also economic power with vast natural resources and developed Industry. Pakistan could have benefitted from the Iranian experience, but our policymakers have never given any consideration to this important and natural ally.
Iran remained a major trade partner of the European Union, but due to sanctions, it developed close trade relations with Turkey and China. Both the countries are now major trade partners of Iran and China is step ahead as Iran has expressed its desire to become part of the China Pakistan Economic Corridor. According to the chief of the Lahore Chamber of Commerce and Industry, trade volume between Pakistan and Iran can be increased if restrictions are effectively imposed on illegal trade. Smuggling is not only damaging the local industry but also causing huge losses to the national exchequer. However, apart from stepping up anti-smuggling activities, steps are required to encourage legal trade between the two countries. For the purpose, government officials of the two countries should come on one page to specify and classify the tradable items and adopt a rational approach when it comes to the imposition of taxes and duties. The incessant supply of Iranian oil and diesel continues in Pakistan despite considerable fall in international oil prices. The demand for petroleum product is increasing in the country which needs over 22 million tons oil annually and it will definitely take time to achieve self-sufficiency.
Despite being a close ally and immediate neighbour, Iran has so far been treated as a distant land and a forgotten neighbor, but the time has come the policymakers should evolve policies to make close economic, political and cultural cooperation with that country. It should be kept in mind that China and Iran are the only countries which always stood by Pakistan in the hours of need.
