Chaman protest: Beyond basic rights, tackling the informal economy’s grip

The ongoing sit-in protest in Chaman (locally called Parlat) is not simply about the rights of unemployed youth, trade concerns or village divisions in the border region. As an Achakzai with a deep understanding of local dynamics, I see a different truth: this protest is about the survival of powerful vested interests deeply entrenched in the informal economy.

The government’s decision to implement one-document regime for the international border, long overdue, has understandably triggered anxieties. However, the pain of economic transformation must not overshadow the urgent need to dismantle the informal system that has for decades bled Pakistan dry.

This system thrives under the patronage of various actors, including the notorious smuggling mafia. Exploiting the Afghan Reverse Transit Trade, estimated at $7 billion last year (against Afghanistan’s total imports of $2 billion), these syndicates line their pockets, leaving only meager scraps for poor communities (Rs10,000-20,000 per month). The local market called “Wash Mandi” across the border, a magnet due to Taliban tax incentives, serves as a hub for smuggling back into Pakistan, enriching not only syndicates but also corrupt officials, property tycoons and even sponsors of terrorist activities.

This unregulated regime has also geo-politically benefited Afghan governments, facilitating the movement of anti-Pakistan elements like Baloch militants and religious extremists, who find safe havens in the border region, destabilising Balochistan and beyond. The recent TTP attacks underscore the

deadly cost of unchecked cross-border activity.

Ignoring this unchecked situation for decades has cost Pakistan dearly in political capital, diplomatic standing, lives lost and financial hemorrhaging. Now, protesters demand an exception to the one-document regime, not just for themselves but also for Afghans in Spin Boldak. However, this concession is untenable given the security threats Pakistan faces.

As a temporary measure, the government has started providing Rs20,000 per month to the affected unemployed youth under BISP. This scheme needs immediate expansion to cover all 20,000 individuals as a stop-gap solution before a medium-term economic plan takes

shape. This transition away from the informal, smuggling-driven economy is crucial.

Initiatives by Afghan governments have also led to Pakistani businesses relocating across the border, with an estimated 20,000 people crossing daily for work. This not only poses security challenges but also diverts economic activity to Afghanistan, where tax incentives and favourable conditions attract investment. While this has benefited some locals through real estate and unskilled labour opportunities, it disrupts the formal economy and harms Pakistani producers.

Therefore, it’s imperative to develop a comprehensive plan that capitalises on opportunities within Pakistan. The primary objective should be addressing the unique development needs of people near the border and bridging gaps in physical and social infrastructure.

A proposed plan, vetted by private sector experts, suggests a multifaceted approach for Chaman’s business development: Upgrade Chaman’s existing Customs Station; leverage its established status and NLC’s role as terminal operator to improve trade efficiency. Implement the Integrated Transit Trade Management System (ITTMS): This project, nearing completion, will streamline trade operations and bring stakeholders under one roof. Declare Chaman a Dry Port: This will enable direct handling of imports and exports from Pakistani seaports, boosting trade and local businesses.

Establish a Free Trade Zone (FTZ)/Export Processing Zone (EPZ):.Tax incentives and streamlined regulations can attract investment, create jobs and diversify exports. Develop warehousing facilities: This will unlock potential in fresh fruits and gemstones, attracting foreign reserves and earning Pakistan valuable revenue.

These initiatives, coupled with the expansion of BISP programme, offer a roadmap for transitioning Chaman away from the informal economy and towards a legitimate, secure and prosperous future. The one-document regime is the first but necessary step in this direction, and policymakers must remain resolute in implementing it while actively supporting the affected communities through short and medium interventions.

The writer is the CT Information and Public Relations Minister, Balochistan. He tweets at @Jan_Achakzai