Why do people in Pakistan use edible oil that 'sneaked' from Iran?

Posted on 29th Dec 2021 by rohit kumar

"It is a cooking oil from the poor. Iran has been preventing this cooking oil (edible oil) from being smuggled out of its country, but it reaches Pakistan through illegal routes. There is a lot of demand for this oil at this time because Pakistan Cooking oil prices have increased in the U.S., so many people benefit from it."

 

This is to say of Nasir Rahim Sohrabi, a resident of Gwadar, who himself has been using Iranian goods and also keeps an eye on its purchase and sale.

 

A large number of fishermen often go fishing on the banks of Gwadar. But this time apart from these boats, some such boats were also standing here in which yellow-colored boxes were visible separately. And many people were seen taking them off.

 

Local manufacturers have also warned the government about this cooking oil, saying that it does not meet the prescribed standards and its use can prove to be dangerous for the public.

 

However, till the publication of this report, no specific response has been received from the government in this regard.

 

Iran oil cheaper

On inquiry, it was found that it is cooking oil, which is being smuggled illegally through the Iranian border and the sea of ​​Pakistan.

 

And then it is transported by road to other cities of Pakistan, especially Karachi. Fishermen say that a can holds 20 liters of cooking oil. They claim that every day 2,000 liters of cooking oil go from Gwadar to the cities of Balochistan and Karachi.

 

Food coming into Pakistan from the Iranian border is not a new thing. However, due to the rapid depreciation of the rupee against the dollar this year, the price of cooking oil has increased in the country and due to this, the demand for smuggled cooking oil has increased.

 

One reason for this is also the huge reduction in its prices in comparison to the cooking oil available in the country.

 

According to Nasir Khan, vice-president of the Federation of Pakistan Chambers of Commerce and Industry in Karachi, "Currently the price of cooking oil in Karachi is Rs 300 per liter, which is being sold at Rs 350-450 per liter in shops.

 

But the price of cooking oil coming from Iran via Gwadar is Rs 191 per liter. Due to this, it is in great demand in the market.

 

How does Iranian cooking oil reach Pakistan?

In this regard, Nasir Khan of FPCCI says that this process is going on for the last 40 years, which started with Iran.

 

'Iran provides food items to its people at subsidized rates. From there it reaches Pakistan and Afghanistan via Iran. The main reason for the illegal import of these substances is the increase in prices in the global market. And as long as the prices keep rising, these goods keep coming into Pakistan.

 

He said that at present this oil comes to Pakistan from the border of Iran by boat and land routes. Whereas a businessman from Gwadar has claimed that 'one thousand rupees are charged on a can of this cooking oil at the border while bringing it from Iran to Pakistan. From this, you can guess that FC, Army, Coast Guard, and Customs are present at various check posts. How far does the matter reach at the rate of Rs 1000 per check post?

 

Electricity comes from Iran

The Kech, Panjgur, and Gwadar districts of Balochistan also get 75 percent of their electricity from Iran at present. But why is the government not accepting this whole series going on for 40 years at the official level?

 

According to a spokesman for the Balochistan government, trade is currently being officially recognized as a market at various levels along the Pakistan-Iran border.

 

According to Hafiz Abdul Majid, Secretary, Industries and Commerce, Government of Balochistan, “Our effort at this point of time is that the difficulties faced by the fencing in Vashuk, Chaghi, Noshki, Panjgur, Turbat, and Gwadar are somehow solved. be given relief. In April this year, the two countries, Iran and Pakistan, have signed an agreement to provide relief to the people on both sides of the border.

 

But people living in these areas say that until a formal market is opened on the border, the process of transporting goods to people through illegal routes will continue.

 

A resident, who transports cooking oil coming from the Iranian border to Gwadar by sea, said that 'this is our source of income. There is no other work here than fishing and bringing goods from the Iranian maritime border.

 

He further said, 'I have been listening to the talk of making a market on the border for the last 40 years. The goods which we get cheap now from this market will get expensive with tax. What will be the benefit of people like me in this?'

 

At one time, Laden Oil and Gulnaz were famous among the cooking oil brands coming from Iran. Gulnaz is still easily available in the markets, while packets ranging from one liter to three liters of this cooking oil are available in the Gwadar market.

 

Concluding his point, Nasir Rahim said, 'The problem at the moment is that selling this cooking oil, on the one hand, goes home in the border areas of Gwadar and Balochistan. But by accepting it at the official level, this business can expand further.

 

Where is the demand for Iranian cooking oil?

Currently, the highest demand for Iranian cooking oil is in Karachi, where according to Nasser Rahim, it is used in two ways. That is, it is also going to grocery stores and it is being used extensively in hotels as well. It travels through the cities of Balochistan to the hub from where it is sent to Karachi by buses and Suzuki vans.

 

This cooking oil is sold at various shops as soon as it reaches Karachi. Nasir Rahim told that 'Earlier this cooking oil was sent only to the shops of Lyari and poor areas of Karachi. But this time it is also going to factories where it is sealed in plastic packs and sold at a lower price in the Sadar Market of Karachi.

 

Recently, local producers of cooking oil in the country have warned the government that Pakistan's cooking oil industry is being harmed by cheap Iranian edible oil.

 

The Pakistan Vegetable Manufacturers Association has written a letter on December 17 to financial advisor Shaukat Tareen, saying that the Iranian cooking oil market is growing rapidly due to the increase in taxes on local oil.

 

Keep in mind that till the publication of this report, no specific response has been received from the government in this regard. Nor has it had a significant impact on the abundance of Iranian oil in the Pakistani market.

 

Local producers claim that Iranian oil does not meet the standards set by the Pakistan Standards Quality Control Authority, so its use can prove to be dangerous for people.