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Last Updated:May 19, 2025, 09:49 IST
In Gwadar and Quetta, proxies extort businesses and kidnap wealthy individuals for ransom, collecting $20 million in one year, according to intelligence sources in 2024
In Gwadar and Quetta, proxies extort businesses and kidnap wealthy individuals for ransom, collecting $20 million in one year, according to intelligence sources in 2024. (PTI)
The Pakistan Army has been accused of using illegal sources of money to curb the Baloch Movement, with proxy groups operating parallel economies alongside the Frontier Corps and exploiting Balochistan’s porous borders with Afghanistan and Iran, which have become a hub for opium and methamphetamine trade. These proxies impose taxes on smugglers and use the proceeds to finance their operations.
The United Nations estimates that $2–3 billion annually flows through Balochistan’s drug routes. Additionally, the smuggling of Iranian diesel into Pakistan via Balochistan generates $500 million yearly, with Frontier Corps checkpoints taking a cut.
In Gwadar and Quetta, proxies extort businesses and kidnap wealthy individuals for ransom, collecting $20 million in one year, according to intelligence sources in 2024. Illegal mining of gold, copper, and coal by groups backed by the Frontier Corps brings in $1.5 billion annually, with profits shared between the proxies and military officials. Top intelligence sources reveal that these groups prevent the civil administration from functioning effectively.
Corrupt officials misuse development funds, like the Rs. 2.8 billion allocated for the Turbat-Buleda road project, which was never completed but used to finance proxy activities. Former finance secretary Mushtaq Raisani, caught with Rs 730 million in cash in 2016, acted as an ATM for proxy financing. Instead of facing jail time, he was sent to London and is now pursuing a PhD in Baloch insurgency.
FC personnel in Mastung have been accused of extorting fuel transporters, demanding bribes to release confiscated goods. Proxies also tax Chinese investments under the China-Pakistan Economic Corridor (CPEC), extracting $10 million annually from security fees imposed on contractors at Gwadar Port. When in need of cash, proxies have reportedly killed Chinese nationals and blamed Indian agencies, resulting in significant under-the-table payments to Frontier Corps headquarters under the guise of security upgrades.
The Frontier Corps’ proxy strategy in Balochistan is marked by threats, corruption, and exploitation. According to a survey, these groups generate $4–5 billion annually through illegal activities.
As per the United Nations Development Programme (UNDP), Balochistan has weak institutions, weak governance and poor law enforcement. The province is also marred by an unsettled security situation, difficult terrain and access, an uncertain water supply, and limited livelihood opportunities. Balochistan has the second highest headcount for multi-dimensional poverty out of all the provinces; at 71.2 per cent.
Location :Islamabad, Pakistan
First Published:News world Balochistan's Hidden Economy: How Proxy Groups, Frontier Corps Exploit Resources & Fund Ops | Exclusive
