Rupee appreciates amid FIA crackdown
The Pakistani rupee extended its gains for the third consecutive day on Friday as the Federal Investigation Agency (FIA) intensified a nationwide crackdown on illegal currency exchange operations and hawala-hundi networks, arresting hundreds of suspects and recovering millions in illicit assets.
According to FIA officials, the operation is being carried out based on credible intelligence received from reliable sources, leading to major action against unlicensed foreign exchange businesses and underground money transfer networks.
So far, 282 suspects have been arrested in 256 raids. In addition, 213 criminal cases have been registered, and authorities have recovered a total of Rs762.27 million from the suspects. Numerous shops involved in illicit transactions have also been sealed.
Law-enforcement agencies (LEAs) have been providing full support in tracking and apprehending the accused. FIA Director General Raja Riffat Mukhtar stated that all available resources are being utilised to arrest hawala and hundi operators.
He emphasised that those engaged in smuggling foreign currency will face severe consequences, backed by solid evidence gathered during the crackdown. He also warned that the FIA is closing in on international agents linked to these criminal networks.
Raja reiterated the agency's commitment to a zero-tolerance policy against illegal currency exchange and informal money transfer systems. He assured the public that action will continue until the networks involved in these unlawful activities are eliminated.
The crackdown comes at a time when the government is striving to stabilise the economy and curb the flight of foreign exchange through unofficial channels. The FIA's ongoing efforts are being seen as a major step toward restoring legality in financial transactions across Pakistan.
On Thursday, Exchange Companies Association of Pakistan (ECAP) Chairman Malik Muhammad Bostan said that a senior officer of the country's premier spy agency met with currency exchange firms this week to address a sharp slide in the rupee, prompting a crackdown on "black market dollar trade".
The action helped stabilise the open market rate and the rupee recovered against the dollar on Thursday, Bostan told Reuters. "The dollar is down one rupee today in the open market. This is because we're finally getting the supply we need," he added.
Bostan on Friday told The Express Tribune that the dollar's downward movement is expected to continue on the back of the ongoing crackdown on hawala and hundi networks. Bostan advised importers against panic buying. "They will get dollars at cheaper rates soon," he added.
The rupee closed the week on Friday with upward trajectory for the third straight day, gaining further ground against the dollar in both the interbank and open markets. In the last three days, the greenback lost Rs2.30 in the open market, closing at Rs286.60 to a dollar.
In the interbank market, the dollar depreciated by 75 paisa, settling at Rs283.70. Bostan attributed the rupee's recovery to increased dollar sales by exporters, who are capitalising on the declining value of the greenback. He predicted that the dollar could fall further to hover between Rs270 and Rs280. (WITH INPUT FROM OUR KARACHI CORRESPONDENT)