Smuggling and land grabs allegedly driving military profits in Pakistan

Paris [France], June 2 : Grave allegations have emerged against the Pakistan Army, accusing it of operating a billion-dollar economic empire built on unregulated businesses, corruption, and illicit trade with Balochistan at the core of its shadow economy.

Taha Siddiqui, a Pakistani journalist living in exile in France, stated that the Pakistan Army maintains vast commercial interests across real estate, consumer goods, and agriculture. According to Siddiqui, the military's business ventures are prioritised in the allocation of government contracts, functioning with little oversight or accountability.

"Due to such financial interests, its professional role as a military force has come under fire," Siddiqui said. "But given its authoritarian control and its manipulation of the judiciary and political class, the army continues to exploit the Pakistani nation for its own benefit."

Qambar Baloch, General Secretary of the Baloch Advocacy and Studies Centre (BASC), said that Balochistan has long served as a profitable zone for Pakistan's military elite. He alleged that the army has built an illicit, unregulated economy in the province, driven by border smuggling, drug trafficking, and the misappropriation of public funds.

He highlighted the 900-kilometre-long Goldsmid Line the border between Pakistan and Iran as a major corridor in an extensive fuel smuggling operation. "Each day, around 6 to 8 million litres of Iranian petroleum enter Pakistan-controlled Balochistan. Approximately 40 percent of the vehicles involved reportedly belong to the Pakistan Army, its informers, or pro-army death squads," Baloch stated.

While local traders are limited to loading their vehicles once every 30 to 40 days, army-affiliated transporters operate daily allegedly earning the military nearly $1 million per day through this illicit trade.

Baloch also accused the Pakistan Maritime Security Agency and the Pakistan Coast Guard the latter commanded by an army officer of facilitating illegal trawling by Chinese and Karachi-based fishing vessels. "This practice is rapidly depleting marine resources in Balochistan's coastal waters and is devastating the livelihoods of local fishermen," he warned.

Simultaneously, the army has reportedly acquired prime coastal land in Gwadar and has been aggressively promoting investment by overseas Pakistanis and foreign entities, further marginalising the local population.

Baloch added that six of the nine major drug trafficking routes from Afghanistan pass through Balochistan. Despite the heavy presence of security checkpoints manned by various agencies, narcotics move freely, while ordinary citizens face frequent and rigorous inspections raising suspicions of complicity by the authorities.

The Pakistan Army is also accused of draining the provincial budget under the guise of security. In 2018 alone, between Rs 20 and 30 million per month was reportedly spent on the Frontier Corps (FC) to police Quetta. The Auditor General of Pakistan highlighted financial irregularities of over Rs 570 million involving the FC in 2014. That same year, the National Accountability Bureau uncovered widespread corruption, including smuggled luxury vehicles and links to drug trafficking.

According to Baloch, the army's influence over electoral processes in Balochistan has allowed it to extract bribes from candidates seeking office. Seats are often awarded to military loyalists many of whom are allegedly involved in drug trafficking and the suppression of nationalist voices.

"Moreover, the army-run Frontier Works Organisation (FWO) has monopolised highway construction contracts and entered mineral exploration through a partnership with Pakistan Petroleum Limited. Their operations target copper and gold deposits in Eastern Chagai, covering 239 square kilometres under license EL-207," Baloch added.

These revelations raise serious concerns about Pakistan's compliance with Financial Action Task Force (FATF) standards. The reported activities suggest significant lapses in Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), anti-corruption frameworks, and judicial enforcement.

As international scrutiny intensifies over the Pakistan Army's dominance and its alleged economic exploitation of Balochistan, calls are mounting for independent investigations, judicial accountability, and structural reforms to dismantle what critics describe as a "military-mafia" system entrenched in the state.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor