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Economic Sustainability: Ban Smuggling in Balochistan

Muhammad Shah

Economic stability for any state is essential in order to reduce poverty, inflation, and increase production to retain economic growth in an economy.

Certain exports and imports of commodities of Balochistan with neighboring countries are operated in an illegal way. This results in suffering of huge losses in terms of generating tax revenue, price hiking, shortage of commodities, unemployment. It can be anticipated through simple survey of different fruit producers and sellers who struggle for the whole year but over supply of goods being imported from other countries decrease the local price value of product in a very short time.

For instance, Khanozai and Kaan Mehtarzai are small towns in Balochistan, which are producing high quality of apple fruit, the farmers struggle for the whole year to produce that fruit but at time of sale, huge supply of same fruits is imported from Iran. This creates huge negative impact on sales agent revenue while selling fruits at market. Seller even cannot recover original cost of his products.

Besides that, electronic items, Non-custom paid vehicles and other daily routine personal health care and food items imported from Afghanistan and Iran affect the economy in terms of collecting tax and offering low rate to destabilize the local market.

As far as exports goods are concerned, Certain products which are smuggled to neighboring countries illegally affect the price and  create shortage of goods like Sugar, Wheat, Flour, Rice Basmati, Oil/Ghee, Potato, Onion, Green Peas, Salt, Chilies. On the other hand, the non-agricultural goods involved are fertilizers, Veterinary medicines, pesticides, sports goods, surgical instruments, fans, gunny bags.

Above items of agriculture and non-agriculture products are smuggled to our neighboring countries on high margin, which consequently create shortfall of commodities in Balochistan and overnight price hiking leads the local market to unfavorable situation. In specific festivals like Eid, the live stock is being exported to Afghanistan in a huge quantity which leads to shortage of supply in huge margin in local markets and prices of particular livestock rise quickly.

As far as above economic issues are concerned, Balochistan government should take initiative in order to strictly keep careful watch on illegal trades which affect economic growth for farmers, investors and state revenue in terms of collection of tax.

Published in The Balochistan Point on October 28, 2015

Disclaimer: Views expressed in this article are those of the author and Balochistan Point not necessarily agrees with them.

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