March 29, 2025
By Nadeem Khan
PANJGUR
It is morning in Panjgur; the bazaar here, edged with old date trees, is densely crowded. Dates are the main agriculture produce that the locals to survive on, in fact almost every shop here is filled with Iranian-made items, especially food products. Even the Iranian-manufactured, blue, Zambad vehicles can be seen crawling around everywhere.
Panjgur is a significant market, from where Iranian groceries are sent across Balochistan and from here it is supplied to the rest of Pakistan. In Balochistan, the primary source of income for the locals is informal trade between Pakistan and Iran as Baloch ethnic groups live on both sides of the border. But in recent days, due to security reasons, several restrictions imposed by Pakistani authorities on border movement have disturbed this informal trade impacting families on both sides.
Muhammad Tayyab, a resident of Panjgur, has been selling Iranian-made grocery items in the Panjgur Bazaar for the past 10 years.
“Previously, we did barter trade,” he said. “Iranians used to come to Pakistan, and we went to Iran without any restrictions. We sent Pakistani items to Iran, and they sent their items to Pakistan, but now border restrictions have disrupted our trade. Many Iranian items have been banned, like flour and other things for daily use.”
Pakistan’s southwestern Balochistan is the least developed and most deprived province in the country. Despite being rich in minerals, and projects like Saindak, Reko Diq, and the China-Pakistan Economic Corridor (CPEC), Balochistan remains poor. But it also remains geopolitically significant for global powers as here lays the geo-strategic and geo-economic interests. It shares borders with Afghanistan, Iran, and a 600 kilometer long coastal belt of the deep Arabian Sea. Balochistan remains a restive and conflict-ridden province as Baloch militants have carried out attacks against Pakistani and Chinese installations, as they believe these projects are exploitative of their resources and belongings in the larger plains of the province. Indigenous communities demand their rights over the resources as children of the soil.
This conflict is not only local but global. Authorities told Voicepk that the volume of trade between Pakistan and Iran is 900 million USD annually. Due to US sanctions on Iran, this trade remains informal, with no banking channel between the two countries still the business would remain in boost but now coming to stagnation.
To attract investment and improve local business, the government of Balochistan has established the Balochistan Board of Investment.
Abdul Kabir Zarkoon, CEO of the board, says the biggest hurdle to trade between Pakistan and Iran is US sanctions. “That is why it can’t be formalized,” he says. “We want to minimize informal trade between the two countries, but we remain flexible for bordering districts because our people depend on Iran for food items and other utility contents.”
To enhance trade, border markets have been established on the Iranian side, and new formal crossing points and industrial areas are planned to benefit locals of Balochistan. In Panjgur Bazaar, we spoke to Shams-Uddin, who came to buy grocery items for his family. He said they prefer Iranian products due to good quality and low costs as majority of the Baloch are poor and they cannot rely on the inflation impacted Pakistani industry products. He added, “Plenty of items are missing from the bazaar. Iranian 50 kg flour packets used to be cheaper than Pakistani 40 kg packets so we would opt for the Iranian flour.” Shams urges the government to allow all essential items for the communities living here in Balochistan.
Pakistan shares a 900 km border with Iran, and on both sides’ live Baloch indigenous communities that were divided by the border fencing due to the border management amid security issues where Pakistan blame the other side safe heavens of the Baloch militants who attack the Pakistani security forces and government infrastructure. Previously exempt from the visa and passport system, the Baloch now face restrictions on free movement. Authorities cite rising security tensions as the reason for restricting cross-border movement and trade while the locals get suffers.
In 1979, Muhammad Reza Shah Pahlavi was replaced by religious cleric Ayatollah Khomeini. After the Iranian Islamic Revolution, Iran’s relations with the rest of the world deteriorated including the majority Sunni Pakistan. In the 2000s, sectarian violence in Pakistan further strained relations, impacting trade and bilateral and track II relations between the people on both sides of the border.
Arif an analyst who has been teaching International Relations at the University of Balochsitan and is keeping a keep observation of the trade and political relations between Pakistan and Iran, warns that depriving locals of economic opportunities will directly rise terrorism in the region and generate resentment against the government, worsening the law and order situation and impacting peace here and in the region. He suggests that establishing joint border markets and promoting barter trade would benefit the locals and they will have chances to earn life that way.
Balochistan shares five districts with Iran: Chaghi, Washuk, Panjgur, Kech, and Gwadar. The people of these bordering districts—and across Balochistan—depend on informal trade between the two countries. Barrech Market in Balochistan’s capital Quetta is renowned for Iranian food items as the province is on a faraway distance from the industrial hubs of the Punjab province. The market remains crowded as residents from other provinces also visit to shop the utilities product from here for their quality and low prices because Iran has no better market for its products due to the international sanctions. Rana Intizar, a resident of Punjab, says, “Iranian items are good. This is my second time in Balochistan. I bought biscuits, honey, toffees, and cake for my family.”
However, the demand for Iranian food items has driven prices up. Abdul Rehman, a shop owner in Barech Market, says, “Chocolate, honey, cake, and coffee are popular, but prices are rising day by day due to restrictions on trade.”
Speaking to Voice.pk.net, Member of the National Assembly from Panjgur-Turbat, Phulain Baloch, said he has raised border issues with relevant departments on the parliament floor, the Prime Minister, and his team several times, suggesting solutions for the people’s relief as they are well aware of the situation of the Baloch masses living in far flung areas. “The government assures us that they will resolve the issues, considering our concerns genuine, but no practical steps have been taken so far,” he said.
Former Chief Minister and currently Federal Minister for Commerce Jam Kamal Khan said that the Prime Minister has formed a committee to address border trade issues while answering questions by the Voice PK.net He acknowledged the limited economic opportunities in Balochistan and the dependence on border trade for livelihood by the masses in the province. “We have banned several items, but we are evaluating what steps need to be taken for tariffs and socioeconomic benefits for the local populations. Ultimately, it’s an issue of employment of the locals.”
Despite regional and global politics and security tensions, small traders and shopkeepers, like Muhammad Tayab, remain anxious about the future of their small businesses, heavily reliant on this informal economy.