Smuggled high-quality, cheap Iranian items make way into Pakistani markets as inflation soars

As food inflation in Pakistan reaches abnormal highs, people are resorting to cheaper but high-quality Iranian goods, but there is a catch – these goods are smuggled. Pakistan’s food inflation reached 42 per cent in urban areas, pushing consumers to pick smuggled Iranian products such as oil and cheese, which are now reportedly readily available in Rawalpindi and Islamabad. 

The most sought-after Iranian products were cooking oil and butter, but commercial customers got hold of most of the stock from wholesale dealers. With the inroad of Iranian products in most shops now, individual customers also have equal access. 

According to a report in Dawn, profit margins on Iranian products are better and there is no complaint about the products as they have a longer shelf life. The packaging of Iranian goods is also one of its unique selling points. 

As per the Pakistani news site, products such as tomato puree and red chilli paste were a relief when prices of fresh tomatoes were on the rise. Some Iranian products are 50 per cent cheaper than Pakistani products. 

However, these cheap and high-quality Iranian products have been smuggled into Pakistan through the Iran-Balochistan border as well as through Afghanistan. Earlier, Iranian products were available in Lyari only but traders have expanded their reach to almost every part of the country. 

The report states that the border trade at the Iran-Balochistan border is not categorised as smuggling by either side. President of Centre for Pakistan and Gulf Studies (CPGS) Nasir Sherazi said that Balochistan is the most sparsely populated area of Pakistan and to meet the needs of people in the remote parts is a difficult task. Even electricity in some parts comes from Iran as it is too costly to extend the national grid there.

Iran provides subsidised consumer items to their citizens in the bordering areas, and the Baloch residents of Iran share the benefits with their community members in Pakistan, explained Sherazi. The surplus is then sold in open markets, and has now reached up to cities in Punjab. These items are not totally duty-free. 

As for the standard of the Iranian items, the report stated that Iranian food items are exported to many Gulf and European countries, and thereby have to follow EU standards. 

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