The Pakistan military has been accused of repressing the Baloch movement through illegal financial networks. Proxy forces, who work under the cover of the Frontier Corps (FC), are allegedly operating parallel economies, making money from the uncontrolled borders of Balochistan with Iran and Afghanistan. These trails have become key channels for drugs such as opium and methamphetamine.
As per estimates of the United Nations, drug trafficking through these routes is worth $2–3 billion every year. In addition to this, Iranian diesel smuggling into Pakistan adds another $500 million yearly. Frontier Corps checkpoints are assumed to collect a share of the proceeds from smuggling.
Extortion, Kidnapping, and Illegal Mining
These proxies do not only engage in smuggling. They also carry out extortion and kidnapping in urban centers like Quetta and Gwadar. Intelligence sources reported that $20 million was raised in ransoms in one year. In addition, illegal mining of minerals such as gold, copper, and coal is said to be another significant source of income. FC groups are said to get $1.5 billion annually from these operations and divide the money with military officers. These activities have made the local civil administration useless, according to senior security sources.
Chinese investments within the China-Pakistan Economic Corridor (CPEC) are likewise being taken advantage of. Proxies levy unauthorized security fees on contractors at the Gwadar Port, earning a total of around $10 million a year. In the worst cases, when out of cash, proxies have reportedly turned against Chinese nationals, attributing the attacks to Indian agencies to make sure clandestine payments flow to FC headquarters, disguised as security upgrades.
Corruption penetrated government infrastructure initiatives as well. For example, Rs. 2.8 billion was spent on the Turbat-Buleda road, but the work is unfinished. Rather, funds were reportedly being siphoned off to finance proxy activities. Case in point is former finance secretary Mushtaq Raisani, who was arrested in 2016 in the possession of Rs. 730 million in cash. Intelligence personnel branded him an “ATM for proxy financing.” Instead of going through legal trouble, Raisani was reportedly shifted to London and is currently pursuing a PhD on the Baloch insurgency.
Exploitation of Fuel Transporters
More allegations include FC personnel in Mastung extorting bribe money from fuel carriers in return for releasing confiscated consignments. The Frontier Corps’ proxy war policy in Balochistan has been said to have earned between $4–5 billion every year from illegal businesses, subsidized by a combination of extortion, smuggling, corruption, and violence.
The socio-economic situation of Balochistan worsens the crisis. According to the United Nations Development Programme (UNDP), the province is afflicted by “weak institutions, weak governance and poor law enforcement.” The province is also confronted with an insecure environment, restricted access because of challenging geography, insecure water supplies, and unavailability of livelihood opportunities. The province has the second highest multi-dimensional poverty rate in Pakistan, influencing 71.2% of its population.
