Pakistan has intensified its efforts to combat illegal dollar trading following a recent record-low value of the rupee, and these stringent measures are beginning to yield positive results.
Information Minister Murtaza Solangi announced ongoing actions against individuals involved in unauthorized dollar transactions, including unrecorded buying and selling of dollars and informal remittances.
As a consequence of this crackdown, the US dollar, which had been trading between 338 and 335 rupees on Monday in the open market, saw its value decrease against the rupee and settle in the 303-306 range by Friday.
By the close of business, the Pakistani Rupee (PKR) appreciated by 0.66 percent, closing at 302.95, marking a gain of Rs. 1.99 against the dollar on Friday.
Media analysts credit the Chief of Army Staff General Asim Munir with the rupee’s strengthened position against the dollar. General Munir recently engaged with the business community and pledged to take robust action against “illegal” dollar trading.
The US Dollar (USD) rate declined in the open market following an administrative crackdown and the deployment of undercover law enforcement personnel at exchange companies nationwide.
Zafar Paracha, secretary of the exchange companies body, confirmed the presence of law enforcement personnel monitoring dollar transactions at exchange companies.
Undercover law enforcement officers have been stationed at the premises of exchange companies across the country in response to requests from the industry. Malik Bostan, President of the Forex Association of Pakistan, noted that their members had reported issues with agents engaging in unauthorized activities, which prompted the request for increased security.
These agents were known to approach individuals seeking to exchange dollars outside the exchange company premises, causing disruptions and potential problems for customers. Bostan also said that exchange companies have ‘surrendered’ 20 million dollars to the State Bank of Pakistan amid threat of future devaluation.
The strengthening of rupee will surely ease the woes of the masses, but continued strict action is need of hour.
