AVN 68.23 Increased By ▲ 0.25 (0.37%)
BOP 9.86 Decreased By ▼ -0.02 (-0.2%)
CHCC 133.07 Decreased By ▼ -0.43 (-0.32%)
DCL 11.55 No Change ▼ 0.00 (0%)
DGKC 114.50 Increased By ▲ 0.15 (0.13%)
EFERT 60.10 No Change ▼ 0.00 (0%)
EPCL 43.80 Decreased By ▼ -0.20 (-0.45%)
FCCL 20.98 Increased By ▲ 0.08 (0.38%)
FFL 17.50 Decreased By ▼ -0.15 (-0.85%)
HASCOL 21.26 Increased By ▲ 0.10 (0.47%)
HBL 133.00 No Change ▼ 0.00 (0%)
HUBC 81.11 Decreased By ▼ -0.44 (-0.54%)
HUMNL 8.21 Increased By ▲ 0.20 (2.5%)
JSCL 30.32 Increased By ▲ 0.41 (1.37%)
KAPCO 26.91 Increased By ▲ 0.01 (0.04%)
KEL 4.13 No Change ▼ 0.00 (0%)
LOTCHEM 12.91 No Change ▼ 0.00 (0%)
MLCF 40.11 Decreased By ▼ -0.06 (-0.15%)
OGDC 108.48 Increased By ▲ 0.23 (0.21%)
PAEL 38.15 Increased By ▲ 0.05 (0.13%)
PIBTL 13.65 Increased By ▲ 0.03 (0.22%)
PIOC 98.80 Decreased By ▼ -0.20 (-0.2%)
POWER 9.23 Decreased By ▼ -0.01 (-0.11%)
PPL 95.10 Decreased By ▼ -0.17 (-0.18%)
PSO 202.07 Increased By ▲ 0.07 (0.03%)
SNGP 65.25 Decreased By ▼ -0.15 (-0.23%)
STPL 14.34 Increased By ▲ 0.03 (0.21%)
TRG 56.70 Increased By ▲ 0.15 (0.27%)
UNITY 17.60 Decreased By ▼ -0.01 (-0.06%)
WTL 1.23 Increased By ▲ 0.01 (0.82%)
BR100 4,355 Decreased By ▼ -5.18 (-0.12%)
BR30 22,224 Increased By ▲ 12.41 (0.06%)
KSE100 41,876 Increased By ▲ 47.35 (0.11%)
KSE30 17,674 Decreased By ▼ -22.51 (-0.13%)
COVID-19 TOTAL DAILY
Pakistan

How are dollars smuggled out of Pakistan?

Chairman of the Forex Association of Pakistan, Malik Bostan, informed that about $10 million goes out of Pakistan i
18 Apr 2020
  • Chairman of the Forex Association of Pakistan, Malik Bostan, informed that about $10 million goes out of Pakistan illegally on a daily basis.
  • The majority of the dollars smuggled from Pakistan go to Afghanistan and Iran, and the bulk of smuggling is done through land border crossings.

The smuggling of US dollars from Pakistan to neighboring countries is one of the leading concerns of the government which in spite of all sanctions and measured, continues to leave the country in some form.

As per details, there are several innovative methods for illegally sending US dollars out of Pakistan, through which millions of dollars are sent out every month. Chairman of the Forex Association of Pakistan, Malik Bostan, informed that about $10 million goes out of Pakistan illegally on a daily basis.

One of the most popular ways to send dollars out of Pakistan is through “Rented Families” or individuals through whom a large shipment of dollars is sent out of Pakistan, and when the shipment reaches its destination the rented family is paid the agreed-upon rent.

As per details, an entire network of smugglers is working to send dollars illegally, with a chain of families and groups under these smugglers payroll.

Experts associated with this business say that the tradesmen of these illegal traders are regularly charged. These activists are called "goats" in the smuggling business, who sacrifice their lives if caught and does not reveal the name of the real person or group sending dollars.

In lieu of these services, these persons are paid in rupees per dollar which can be anything from two rupees per dollar.

The majority of the dollars smuggled from Pakistan go to Afghanistan and Iran, and the bulk of smuggling is done through land border crossings. However, part of the trade is linked to Dubai and other Gulf states.

Another way of sending dollars to Afghanistan is through goods trucks, which carry various goods from Pakistan to Afghanistan for legal trade. In these trucks, a few boxes of dollars are also placed inside boxes of other luggage that the person arrives at the destination receives.

"The biggest reason for the dollar being smuggled into Afghanistan is the absence of a legal market for money there," Malik Bostan said.

He said that about 40 percent of the total value of dollars of Pakistan's foreign exchange was smuggled and when the government closed the border for some reason, their legal business increased by 30 percent.

According to Malik Bostan, the action against smuggling is an old demand of his association and he also met Prime Minister Imran Khan last year for the purpose after which various governmental measures have reduced the smuggling significantly. ?

He said that in order to eliminate the smuggling of dollars, the government should reduce the tax on imports and there should be regular registration of every foreign item sold in Pakistan.

In addition, "under-invoicing" should be fully banned and strict action should be taken against the trader who does so.