June 5, 2025
By Nadeem Khan
PANJGUR
An old, rickety oil tanker rumbles into Panjgur city via a dirt road. As it enters the city limits, mobile signals flicker to life. The driver’s phone rings—a call from home, checking on his safety. The conversation is loud enough for us to overhear.
The driver, Razzaq, a resident of Panjgur, transports diesel from Iran to Pakistan. The journey is far from easy—loading the tanker and driving it to Panjgur takes him two full days.
“My turn comes once every three months,” Razzaq says. “I have six children to feed. This work barely keeps us afloat.” He demands the abolition of the controversial “token system,” which governs cross-border fuel trade.
What is the token system?
In 2020, the Balochistan government introduced the token system for border districts, allowing only registered vehicles to transport petroleum products from Iran. But the system has drawn increasing criticism, primarily due to long waiting periods for permits.
“The wealthy have 50 tokens each, while the poor have none,” Razzaq says bitterly, shifting gears as his tanker climbs a rough patch of road.
Balochistan is rich in minerals, yet it remains Pakistan’s most underdeveloped province. With no major industries and scarce employment opportunities, many rely on cross-border trade with Iran. However, Pakistan’s tightening restrictions on border movement have devastated those dealing in Iranian petroleum. The government has also shut down a key border crossing in Kech district, leaving hundreds of fuel traders jobless.
Why the crackdown?
Analyst Arif believes Pakistan’s strict border policies stem from two key factors: international sanctions on Iran and stringent IMF conditions.
“Pakistan sources a significant portion of its energy needs from Iran, saving foreign exchange. If it buys oil from the global market instead, reserves will deplete faster,” he explains.
Arif warns that without alternative livelihoods, shutting down the fuel trade could push unemployed youth toward militancy. He proposes joint border markets and expanded trade between the two countries.
Demand vs. smuggling debate
Iranian petrol and diesel are 50-60 rupees per litre cheaper than Pakistani products, making them highly sought after—not just in Balochistan but across the country. However, the Petroleum Dealers Association claims this trade undercuts imports from Gulf countries, branding it as smuggling.
Political backlash
Member of the National Assembly (MNA) from Panjgur-Turbat, Pullian Baloch, demands an end to the token system and calls for open border trade.
“The token system has failed. It’s become a tool for political bribes—some have hundreds of tokens, while others have none,” he says. “Locals should be allowed to trade based on their national ID cards.”
The drivers’ plight
Ali Haider, a student who occasionally transports fuel to Quetta, says a single trip earns him between 100,000 to 150,000 rupees—but his turn comes only once every few months.
“My family is large, and this work isn’t enough. If the government gave me a job, I’d quit immediately,” he says. “Both Iranian and Pakistani security forces harass us.”
Haider alleges extortion by security personnel: “They demand thousands in bribes per trip.”
The Balochistan government has not responded to these allegations. However, Federal Commerce Minister Jam Kamal Khan says a high-level committee, led by the prime minister, is addressing border-related issues.
“Some trade is legal, some traditional. Restrictions exist on certain goods, but given the scale of livelihoods at stake, the government is working on solutions,” Kamal says.
The human cost of a closed border
Najib Saleem, head of the Border Bachao Tehreek, warns that sealing the border would be catastrophic.
“People’s survival depends on this trade. If the border closes, their livelihoods die,” he says.
Many drivers risk their lives—accidents are common, and sometimes, a trip ends in loss rather than profit. For Razzaq and Ali Haider, the message is clear. “Give us better jobs, and we’ll leave this dangerous work behind.”