FIA arrests one more in ongoing crackdown against illegal currency dealers

KARACHI: The Federal Investigation Agency (FIA) reported on Saturday its Lahore circle had arrested an illegal currency dealer allegedly involved in currency smuggling (hawala/hundi) from capital city of Punjab province.

The development came a day after a Pakistan court sentenced three illegal currency dealers to five years in prison and imposed a fine of Rs1 million on each for their involvement in unlawful foreign exchange trading.

So far, the law enforcement agencies including the FIA has announced the arrest of a total of four illegal currency dealers in the past two weeks – since a crackdown was launched against illegal currency dealers and smugglers.

The law enforcement agencies have intensified the ongoing crackdown to help Pakistani rupee recover against US dollar and other world major currencies.

According to the FIA statement on Saturday, FIA Corporate Crime Circle Lahore arrested the suspect from Azam Cloth Market, Lahore, as the circle intensified the ongoing crackdown against illegal currency dealers and hawala/hundi operators.

The suspect was identified as Gul Ameer, a resident of city Peshawar, Khyber Pakhtunkhwa (KP), the FIA statement read.

The federal agency recovered Pakistani currency worth Rs6.4 million during the raid, it added. “Hawala/hundi receipts and other digital evidence were also recovered from his possession.”

“The suspect has been taken into custody and investigation has been initiated. Raids are being conducted to arrest other accomplices of the suspect.”

On Friday, Pakistan’s court of the First Additional Sessions Judge, Sukkur, jailed three illegal currency dealers for five years and imposed a fine of Rs1 million each. The convicts were including Qamar Shehzad, Muhammad Zeeshan, and Zubair Asghar. The FIA Composite Circle Sukkur had registered the case against them.

The crackdown has supported the domestic currency strengthened against US dollar and other currencies in inter-bank and open markets in recent days.

According to State Bank of Pakistan’s (SBP) data, the rupee has regained a total of Rs2.4 against US dollar since launch of the crackdown on July 23, 2025 to date, closing at Rs282.5/$ in the inter-bank market on Friday compared to Rs284.9/$ on July 22, 2025.

Earlier, the rupee had lost almost Rs3 to a dollar in the prior seven weeks to Rs284.9/$ on July 22, 2025 since June 1, 2025.

Talking to Business Recorder on July 23, Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan said he had led a currency dealers’ delegation to the Director General of Counter Intelligence (DGC) at the Inter-Services Intelligence of Pakistan (ISI) in Islamabad.

According to an ECAP statement then, Bostan apprised the DGC about the currency smuggling to Iran and Afghanistan. “Due to higher black market rates, the supply of dollars is decreasing to legal currency dealers day-by-day,” he was quoted as saying in the statement.

“On this, General Faisal Naseer [DGC] immediately ordered law enforcement agencies to crack down on currency smugglers and arrest them,” the ECAP said.