Govt Reckons Barter Trade of Iranian Oil to Cause Revenue Loss

The Petroleum Division has said that barter of cheap Iranian oil at Pakistan Iran Border would lead to an increase in petroleum imports which will result in enhanced revenue losses.

The Federal Board of Revenue (FBR) is also planning to start the second phase with a crackdown against those Petrol Pumps in Balochistan, which are selling smuggled Iranian oil, revealed a presentation of the Petroleum Division.

To evolve a mechanism for stopping the smuggling of Iranian oil, the Petroleum Division has prepared a presentation on barter of cheap Iranian oil at Pak-Iran Border to avoid fuel smuggling and sustenance of the local poor economy of the area.

According to the Petroleum Division, smuggled petroleum products from Iran are of inferior quality as compared to the legal products, also harmful to the environment and damaging to the vehicle.

Smuggling of Iranian oil is causing a substantial loss of revenues each year, the division said.

Customs authorities had initiated a crackdown on illegal outlets using smuggled products from Iran in Sindh, Punjab and KP on11 January 2021 and now in the second phase, a crackdown against smuggled products in Baluchistan will also start.

The Petroleum Division has recommended that the Federal and Provincial governments should consider welfare schemes and initiate providing an alternate source of income for the deprived community rather than allowing smuggled products.

The Division further noted that barter trade falls in the domain of the Ministry of Commerce and it has to ascertain products to be exchanged as well as the terms and conditions for such an arrangement.

Presenting its own point of view on the barter trade the Petroleum Division has remarked that barter would lead to increased imports from Iran and consequent increase in revenue losses.

  • So the govt. is implying that if they initiate barter trade to stop smuggling, it will reduce the earning of govt. (loss of revenue)? Are they even listening to what they are saying? Barter trade will convert the illegal trade into legal one, it will be beneficial to the country as people will have legal source of income, and govt. can regulate the petroleum products entering from Iran. Also it shall reduce import of oil from other sources and save dollar reserves. It is a win win situation and govt. says otherwise.

  • First of all I pray for all Pakistanis who sacrifices lives and make efforts for the peace and development of the province, lieutenant general Sarfaraz Ali are among the brave souls who fights against the evils but regretfully we are not capable of securing honest Pakistanis for long periods. If Federal and Provincial authorities sincerely want to work for the development of Balochistan it will easily be made Singapore, Dubai, etc economies in 10 to 15 years. Balochistan natural resources, sea and dry ports, no any province of the country have but also very counted regions of the world have. Government should stop the business of curruption and the politics of East India company in the province.

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