Crackdown Ordered Against Currency Smugglers to Control Rising Dollar Rate in PakistanPublished: July 25, 2025

A senior official of the Inter-Services Intelligence (ISI), Major General Faisal Naseer, held a detailed meeting with members of the Exchange Companies Association of Pakistan (ECAP) on Tuesday. The purpose of the meeting was to understand the reasons behind the recent surge in the dollar’s value and to find immediate solutions.

Key Concerns Highlighted

During the meeting, ECAP Chairman Malik Bostan informed Major General Naseer that the sudden increase in the dollar’s rate was due to the reactivation of currency smuggling networks. He explained that these illegal groups are actively involved in smuggling US dollars and other foreign currencies to neighboring countries like Afghanistan and Iran.

Malik Bostan added that the situation has become alarming, as these criminal activities were pushing the dollar rate up and weakening the rupee further. In response, Major General Naseer assured that strict action would be taken immediately and instructed law enforcement agencies to begin targeted operations against currency smugglers.

Immediate Action Taken

Following the meeting, security agencies, including the Federal Investigation Agency (FIA), began conducting intelligence-based raids. As a result of these operations, many illegal operators reportedly went underground, and the currency market began to show early signs of recovery.

According to ECAP, the open market dollar rate, which was previously trading at Rs. 288.60, fell slightly to Rs. 288. Meanwhile, in the interbank market, the rate declined from Rs. 285 to Rs. 284.80.

Future Outlook

Malik Bostan expressed optimism regarding the situation. He predicted that if the FIA continues to crack down on smuggling networks and illegal hundi-hawala operators, the dollar rate could decrease even further. He estimated that the rate might fall to Rs. 270 in the short term and eventually stabilize around Rs. 250 if the operations remain effective.

Final Thoughts

The recent government-backed action against currency smugglers could become a turning point in controlling the ongoing rise in the dollar rate. Market experts believe that curbing illegal dollar movements is essential for restoring public confidence and strengthening Pakistan’s economy. The coming weeks will reveal whether this crackdown can bring long-term stability to the foreign exchange market.