By A1TV Pakistan Bureau Office
September 6, 2023 | Islamabad
ISLAMABAD — Pakistan’s caretaker government launched a nationwide crackdown on dollar smuggling, currency hoarding and illegal foreign exchange operations on Wednesday as authorities moved to curb illicit trading amid mounting pressure on the Pakistani rupee.
The government said action was being taken against individuals and networks allegedly involved in dollar smuggling, hoarding and other illegal economic activities that were damaging the national economy.
The campaign came as the Pakistani rupee had fallen sharply against the U.S. dollar, intensifying concerns over the country’s already difficult economic situation.
Authorities ordered action against unauthorized money changers and illegal currency dealers, while surveillance at Pakistan’s land borders, airports and seaports was also set to be strengthened to prevent the unlawful movement of currency and goods.
Caretaker Interior Minister Sarfraz Bugti said the countrywide anti-smuggling operation had been launched on the instructions of caretaker Prime Minister Anwaar-ul-Haq Kakar.
The Federal Investigation Agency also intensified operations against illegal foreign currency businesses and hundi-hawala networks.
In Peshawar, FIA officials raided currency businesses in the Chowk Yadgar market as part of the campaign. Authorities said more than 45 unauthorized currency shops were closed, while enforcement operations against illegal foreign exchange dealers continued.
The government’s measures came as the rupee had fallen to record lows against the dollar. On September 5, the currency was trading at around Rs307 to the dollar in the interbank market.
The crackdown quickly became one of the caretaker government’s most significant economic enforcement campaigns.
Alongside enforcement action, the State Bank of Pakistan moved to reform the exchange-company sector in an effort to improve transparency and strengthen oversight of the foreign exchange market.
The rupee subsequently began recovering. By September 11, it had strengthened to Rs301.16 against the dollar in interbank trading, compared with Rs307.09 on September 5.
Authorities maintained that action against illegal currency trading, smuggling and hoarding would continue as Pakistan sought to stabilize its foreign exchange market and restore confidence in the rupee.
The campaign marked an aggressive attempt by the caretaker administration to tackle informal currency markets at a time when Pakistan was struggling with inflation, depleted foreign exchange reserves and wider economic uncertainty.