Gems, Timber and Jiziya: Pakistan's Taliban Harness Resources to Fund Jihad

<http://www.jamestown.org/programs/gta/single/?tx_ttnews[tt_news]=34928&tx_ttnews[backPid]=26&cHash=4d18a44d9a>http://www.jamestown.org/programs/gta/single/?tx_ttnews[tt_news]=34928&tx_ttnews[backPid]=26&cHash=4d18a44d9a

Publication: Terrorism Monitor Volume: 7 Issue: 11
April 30, 2009 05:14 PM

By: 
<articles-by-author/?no_cache=1&tx_cablanttnewsstaffrelation_pi1%5Bauthor%5D=240.htm>Animesh
 
Roul

Emacs!


Swat Valley

The Taliban resurgence in Pakistan’s lawless 
provinces and its unhindered march towards the 
heartland of the restive country is fueled by an 
ever increasing economic life-line. Unlike 
Afghanistan’s Taliban, which depends on the poppy 
trade for revenues, the robustness of the 
Pakistan Taliban’s financial strength depends on 
a variety of sources, ranging from the timber 
trade, precious stone mining and now, the 
imposition of a religious/protection tax 
collected from minority religious communities.

The Islamabad administration has buckled under 
pressure from the Taliban, promulgating the 
Nizam-e-Adl (Islamic Jurisprudence) regulations 
in the Swat valley where the government has 
virtually lost control. The peace agreement gives 
the Taliban forces a massive opportunity to 
exploit the rich natural resources of Swat at will.

Before fighting broke out in Swat, one of the 
region’s main sources of revenue was a thriving 
tourist industry. Needless to say, there is no 
tourism in the region now and the Taliban have 
dismantled tourist resorts and tourism training 
facilities, auctioning off furniture, computers 
and building materials in Barabandai (The News [Islamabad], April 13).

The multiple sources of Taliban income make the 
Tehrik-i-Taliban Pakistan (TTP) a resilient and 
well-armed group with an agenda of turning 
Pakistan into an Islamic state.  Observers fear 
the wealth at the disposal of Taliban will enable 
them to sustain their jihad activities in Pakistan and beyond.

The exploitation of northwest Pakistan’s natural 
resources for organizational revenues started in 
April 2008, when Taliban militants took over the 
Ziarat marble quarry, a white marble mine in the 
Mohmand tribal district. Before the arrival of 
the Taliban, Islamabad had planned to modernize 
the marble mines at Ziarat as part of an effort 
to increase marble and granite exports to $500 
million per year by 2013. Roughly one million 
tons of marble are extracted from FATA every year 
(Daily Times [Lahore], July 20, 2008). Since the 
Taliban takeover, the quarry has brought the 
Taliban tens of thousands of dollars. Buoyed by 
this success, the TTP began eying the emerald deposits of Swat.

Emerald Mining

Arguably, the Taliban’s current strategy in the 
Swat region of Pakistan’s North-West Frontier 
Province (NWFP) is to exploit all resources 
available to them while the truce agreement with 
the Pakistan government is in force. Late in 
March, reports from the Swat valley emerged that 
the Taliban militants had taken control of 
government controlled emerald mines located in 
the mountains of Mingora. The occupation of the 
Mingora mine apparently took place sometime in 
February 2009, following the peace deal between 
the provincial administration and Sufi Muhammad, 
leader of the 
Tehrik-e-Nifaz-e-Shariat-e-Mohammadi (TNSM - 
Movement for the Enforcement of Islamic Law). 
Taliban forces then seized the nearby Shamozai 
and Gujjar Killi mines and initiated mining and 
trading processes on their own, employing a large 
number of local laborers. Locals are eager to 
work for the Taliban, who take one-third of the 
profits and distribute the rest to the workers.

The Gujjar Killi emerald mine in Shangla district 
(NWFP) was formerly leased to Luxury 
International, a US-based firm that abandoned 
operations when fighting began in the area. 
Nearly 70 Taliban militants occupied the mine 
after ousting government-appointed officials and 
employed local laborers on a profit sharing basis 
(Daily Times, April 2). Locals said the Taliban 
had decided to occupy Gujjar Killi when the 
government failed to take any action after the 
seizure of the Mingora mine (The News, April 2). 
Muslim Khan, spokesman for the Swat Taliban, 
justified the mining by saying that “all these 
minerals have been created by Allah for the 
benefit of his creatures” (Sunday Telegraph, April 4).

Mullah Fazlullah, the leader of the Swat-based 
Tehrik Taliban Swat (TTS), has been largely 
responsible for this economic activity in the 
NWFP. Fazlullah, the son-in-law of TNSM leader 
Sufi Muhammad, now controls these mining 
activities in Swat and adjoining places. 
According to one report, the gemstones are sold 
quickly at below market prices and smuggled to 
the Indian city of Jaipur (capital of Rajasthan) 
and thereafter transported to Bangkok, 
Switzerland and Israel (Sunday Telegraph, April 
4). A BBC report indicated that emerald prices 
range from $1,000 to more than $100,000 for a cut 
stone, depending on the size and quality (BBC News, March 24).

Emerald mining and the international sale of 
gemstones through various channels provides much 
needed capital for the Taliban to capture other 
natural resources in the region. Most alarming is 
the possibility that the Taliban, which is 
largely immune to any offensive for now, could 
target other precious stone mines in the NWFP. 
Pink Topaz, Peridot, Aquamarine and Tourmaline 
are all available in abundance in different parts 
of the province. There are also reports that 
archaeological sites in the area are being 
looted, with the Taliban likely taking a cut of 
the proceeds, either as protection money or to 
encourage the continued instability that makes 
such looting possible (Dawn [Karachi], March 22). 
It is feared that the Taliban will use the money 
made from the excavation and sale of gemstones to 
finance more suicide attacks on NATO forces in 
neighboring Afghanistan and support Taliban expansion in Pakistan.

Timber Trade

Another lucrative source of income for the 
Taliban is Swat’s forests. The symbiotic tie 
between Taliban militants and the Timber mafia in 
Swat and nearby Dir is no secret. Large-scale 
illegal cutting of the region’s pine forests 
began simultaneously with the 2007 Taliban 
offensive in the area and the flight of most of 
the people living in the forests (Dawn, March 
22). Taliban militants have been involved in the 
widespread cutting of the thick pine forests and 
apple orchards of Malam Jaba, Fatehpur, Miandam 
and Lalko, often in collusion with the mafia 
elements that cause enormous environmental damage 
to the region while making immense profits (The News, April 13).

The Taliban has long been in control of the 
timber trade in the NWFP and parts of the 
Federally Administered Tribal Areas (FATA). In 
mid-2008, Environment Minister Hamidullah Jan 
Afridi pointed towards the militant-criminal 
nexus in FATA and stated that the “timber mafia” 
has been responsible for funding militancy in the 
NWFP and in FATA (Daily Times, July 28, 2008). 
The enormity of the illegal exploitation of this 
state-owned natural resource can be determined by 
the statement of one government official: “The 
losses suffered by forests in the last year were 
more than the losses of the last two decades” 
(The National [Abu Dhabi], April 3).

The Jiziya Tax

Taliban financing efforts have reached the 
Orakzai Agency of FATA, situated close to Swat 
and Bajaur Agency, the site of heavy fighting 
between the Taliban and government forces in 
recent months. Taliban militants have demolished 
houses belonging to the minority Sikh community 
and confiscated their property in the Ferozkhel 
area of Orakzai Agency after they failed to pay 
the negotiated amount of 15 million rupees to the 
Taliban as jiziya­the poll tax levied on 
non-Muslim minorities living under Islamic rule 
as sanctioned by Shari’a. The houses were 
destroyed at the behest of Taliban commander 
Hakimullah Mahsud, the Taliban head in the 
Orakzai Agency and a close aide of TTP chief 
Baitullah Mahsud (The Nation [Islamabad], April 
30). Earlier in April, Taliban militants demanded 
50 million rupees a year as jiziya. To enforce 
their demands they held local Sikh leader Sardar 
Saiwang Singh captive and occupied a number of 
Sikh-owned houses (ANI, April 15; Daily Times, April 16).

Many Sikhs have decided to flee Swat, followed by 
members of the Hindu and Christian minorities 
(SamayLive, April 25). The situation for the 
Christian minority in Swat following the 
imposition of a Shari’a-based administration is 
not good and they are reportedly living in 
constant fear of the Taliban, even though the 
TTP’s Qari Abdullah is reported to have agreed to 
provide equal opportunities to the religious 
communities of Swat (Compass Direct News, March 
31). Qari Abdullah’s pledges to protect 
minorities aside, pro-Taliban elements have 
attacked the Christian community in the Karachi 
neighborhood of Surjani Town. The violence began 
when pro-Taliban militants tried to prevent local 
Christians from removing graffiti on their church 
that demanded Christians convert to Islam or give 
jiziya, like the Sikhs in Orakzai (Daily Times, April 23; The News, April 23).

Conclusion

Surprisingly, the Islamabad administration has so 
far remained silent over the Taliban takeover of 
mines and the exploitation of forest resources. 
Pakistan is suffering the loss of 65 billion 
rupees annually from the illegal timber trade and 
indiscriminate deforestation alone. The plight of 
minority communities has been ignored by the government.

The brief military operation against a marauding 
Taliban in Buner and Lower Dir notwithstanding, 
the Pakistan government is largely reluctant to 
initiate any major offensive in Swat against 
TNSM-TTP militants there. Instead of addressing 
the exploitation of minorities and the 
indiscriminate looting of Swat’s resources, the 
central government seems prepared to go ahead 
with implementing Islamic law in the Swat region 
under the Nizam-e-Adl Regulations. The continuing 
decline in government authority in the region 
will give ample opportunity to the Taliban to 
organize an exploitative but functioning financial system.

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