KARACHI: Law enforcement agencies have decided to intensify their crackdown on currency smugglers and unauthorized money dealers, accordingly, on Wednesday, FIA teams conducted intelligence-based raids, contributing to a decline in the dollar rate in the open market.
According to the Exchange Companies Association of Pakistan (ECAP), the action followed a meeting between ECAP Chairman Malik Muhammad Bostan and members with Director General (C) ISI, Major General Faisal Naseer, at his office in Islamabad on Tuesday.
According a statement issued by the ECAP, during the meeting, Major General Faisal Naseer inquired about the reason of recent sharp increase in the exchange rate. In response, Malik Bostan explained that the surge is due to smuggling of dollars and other foreign currencies to Iran and Afghanistan.
Additionally, he highlighted that agents of these smugglers trap customers outside legal exchange companies by offering better rates and then they take these customers to secret offices to buy foreign currencies at black market rates. This move of smugglers is preventing customers from reaching legal exchange counters and, due to higher rates in the black market the supply of dollars is decreasing daily.
Bostan further mentioned that due to new FBR regulations, any purchase above Rs. 200,000 made in cash (rather than through banking channels) results in the imposition of tax on the seller.
Consequently, many non-filer customers, to hide their identities, are buying and hoarding foreign currencies from the black market at large scale. He suggested that the government should not impose any tax on purchase of $2,000 in foreign currency. This would reduce the demand for dollars and help bring down the exchange rate quickly, he added.
According to Malik Bostan, Major General Faisal Naseer responded positively and said he would discuss this proposal with the government. Moreover, he immediately ordered law enforcement agencies to launch a crackdown on currency smugglers and arrest them. As a result of this action, the smuggling mafia reportedly went underground by Wednesday.
Bostan further said that on Wednesday FIA teams conducted intelligence-based raids, which led to a drop in the market dollar rate from Rs. 288.60 to Rs. 288, and in the interbank market, the rate dropped from Rs. 285 to Rs. 284.80 per dollar.
Copyright Business Recorder, 2025
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