Pakistan losing billions as 6 million litres of smuggled oil enter daily

Officials told Pakistan’s National Assembly panel that 6 million litres of smuggled petroleum enter the country daily, draining tax revenue and hurting regulated fuel sales. The committee calls for stronger enforcement and better coordination to stop smuggling networks.

Staff Report

July 14, 2026

1 min read
Pakistan losing billions as 6 million litres of smuggled oil enter daily

ISLAMABAD: Around 6 million litres of smuggled petroleum products are entering Pakistan every day, causing significant revenue losses to the national exchequer and disrupting the country's regulated fuel market.

The issue came under discussion during a meeting of the National Assembly Standing Committee on Petroleum, where officials said large-scale fuel smuggling continues despite ongoing enforcement efforts.

Committee members were informed that the illegal trade is depriving the government of billions of rupees in taxes and duties while also affecting the sales of licensed oil marketing companies.

Officials said smuggled fuel enters the country through multiple routes and is sold at lower prices than legally imported petroleum products, making it difficult for authorised dealers to compete.

The committee directed the relevant authorities to strengthen border enforcement, intensify action against smuggling networks and improve coordination among law enforcement agencies to curb the illegal trade.

Members also stressed the need for stricter monitoring of the petroleum supply chain to protect government revenue and ensure fair competition in the fuel market.

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