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Business Recorder
11 hours ago
- Business
- Business Recorder
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.
Business Recorder
a day ago
- Business
- Business Recorder
Pakistan court jails 3 illegal currency dealers for 5 years, fines Rs1mn each
KARACHI: A Pakistan court sentenced on Friday 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. According to a statement from the Federal Investigation Agency (FIA), the convicted individuals include Qamar Shehzad, Muhammad Zeeshan, and Zubair Asghar. The FIA Composite Circle Sukkur had registered the case against them. The court of the First Additional Sessions Judge, Sukkur, heard the case and handed down the sentence. During the investigation, according to the FIA statement, authorities recovered three major currencies including Pakistan rupees, US dollars and Saudi riyals from the accused. 'Authorities recovered 1 million Pakistan rupees, 20,700 US dollars, and 147,000 Saudi Riyals from them.' Earlier, FIA along with other law enforcement agencies launched crackdown against illegal currency exchange and those involved in smuggling foreign currencies to neighboring counties including Afghanistan and Iran. The action 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 Rs2.43 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 five weeks to Rs284.9/$ on July 22, 2025 since June 1, 2025. The FIA statement said the court ordered the recovered currency be confiscated in favour of the state. Talking on 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.
Arab News
7 days ago
- Business
- Arab News
Pakistan arrests eight in nationwide crackdown on illegal currency trade
KARACHI: Pakistan's Federal Investigation Agency (FIA) has arrested at least eight suspects in nationwide raids since last week, it said on Saturday, in a crackdown on illegal foreign exchange businesses in the country's southern and southwestern regions bordering Iran and Afghanistan. The arrests followed a July 22 meeting in Islamabad between a senior official of the military-run Inter-Services Intelligence (ISI) and representatives of the Exchange Companies Association of Pakistan (ECAP). The interaction took place amid growing concern over the rupee's decline, which last week fell to a 22-month low of Rs284.97 against the US dollar. Following the meeting, the FIA began operations targeting illegal currency dealers, including operators of hundi and hawala, informal money transfer systems that operate outside official banking channels. While commonly used for remittances, these systems are also prone to abuse for money laundering and terror financing. Raids were conducted in Karachi, Quetta, Gwadar and Chaman. 'The FIA, acting on credible source reports, conducted raids targeting illegal foreign exchange traders and hundi-hawala operators,' the agency said in response to written questions from Arab News. It denied that these operations were 'prompted by specific directives' from the ISI. According to State Bank of Pakistan (SBP) data, the rupee appreciated following the crackdown and closed at Rs282.72 in the interbank market on August 1. In the open market, the currency traded between Rs284.62 and Rs285.30, according to ECAP. The South Asian nation's currency had been under consistent pressure in recent months, declining over 2 percent against the dollar since January despite a stabilizing economy, including a $2.1 billion current account surplus during the last fiscal year. With import bills exceeding $58 billion, the rupee remains vulnerable to global currency shocks and illegal financial outflows. The FIA said it has conducted 'hundreds of intelligence-based operations across the country from January to July,' arresting at least 290 suspects and recovering over Rs800 million ($2.83 million) in local and foreign currencies, including US dollars and Saudi riyals. Authorities have also filed 213 police reports related to black market activities. 'These operations aim to curb unlawful financial practices and ensure compliance with relevant laws,' the agency said. 'Upon identifying violations, the FIA initiates legal proceedings against those involved in accordance with applicable laws.' Pakistan operates a multi-tiered currency market, with the official interbank rate often diverging from the open market and the unregulated 'grey market,' where many hawala operators function. Under a $7 billion bailout agreement with the International Monetary Fund (IMF), Pakistan is required to keep the difference between official and parallel market rates below 1.25 percent. 'This initiative [of launching crackdowns] has also helped to close the gap between the official and black market exchange rates, which is a crucial requirement of Pakistan's agreement with the IMF,' said Qazi Owais-ul-Haq, a currency trader at Arif Habib Ltd., a Karachi-based brokerage. Haq added the clampdown has helped reduce market speculation and illegal foreign currency outflows, boosting the rupee's standing. 'The pressure on the currency market has eased, and many exporters are now beginning to repatriate their earnings, which is further supporting the rupee's position,' he said, citing ECAP officials. Financial data firm Tresmark reported the rupee remained 'relatively stable' between Rs282 and Rs283 this week, despite earlier market expectations it could strengthen to Rs278-280. 'We expect currency rates to remain range-bound this month,' the firm said, though it projected the rupee could weaken again to Rs284 in the next three months. Still, analysts say the long-term outlook remains uncertain and dependent on broader structural reforms. 'The real challenge for authorities will be to implement sustainable economic policies that lessen the need for such interventions and ensure the currency's long-term stability,' Haq added.
Arab News
27-07-2025
- Business
- Arab News
At least five arrested as Pakistan widens crackdown on illegal currency exchange, transfers
ISLAMABAD: Pakistan's Federal Investigation Agency (FIA) has arrested five suspects involved in illegal currency exchange and transfer of money, the agency said on Sunday, amid a widening crackdown on black market currency traders. The development comes days after the Inter-Services Intelligence (ISI), Pakistan's powerful military-run spy agency, held a meeting in Islamabad with senior officials from currency exchange companies, amid growing concern over the rupee's depreciation, which fell to a 22-month low of Rs284.97 against the US dollar earlier this week. Maj. Gen. Faisal Naseer, a deputy chief of the ISI, chaired the session, according to Malik Bostan, who attended the discussion and is the chairman of the Exchange Companies Association of Pakistan (ECAP), told Arab News. The FIA had begun raiding informal, unregulated money transfer, or 'hundi' and 'hawala,' operators and currency smuggling networks. In a statement on Sunday, the agency said it was tightening the noose around networks involved currency smuggling and had conducted major operations in the southwestern Balochistan province that border Iran and Afghanistan. 'Five suspects involved in hawala, hundi and illegal currency exchange have been arrested,' the FIA said in a statement. 'The suspects were arrested in raids in different areas of Quetta and Chaman.' Pakistan operates a multi-tiered currency market, with rates diverging between the official interbank channel, the open market, and an unregulated 'grey market' where many traders and informal hawala dealers operate. Burdened by over $58 billion in imports in the last fiscal year, Pakistan faces severe inflationary pressure whenever the dollar strengthens. The rupee has lost 2 percent of its value since January, despite Pakistan's current account recording a surplus of $2.1 billion, according to central bank data. During the raids in Balochistan, the FIA said, officials seized 684,000 Pakistani rupees, 230.5 million Iranian rials, more than 135,000 Afghanis, 700 US dollars, 200 Saudi riyals and 150 Australian dollars. 'Cheque books, hawala-hundi receipts and bank deposit slips were also recovered from the suspects,' it said. 'The accused were involved in currency exchange without a license. They could not give a satisfactory answer to the authorities regarding the recovered currency.' The agency said it was further investigating the arrested suspects.
Business Recorder
24-07-2025
- Business
- Business Recorder
Rupee gains against US dollar amid reported crackdown
Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee strengthened against the US dollar, appreciating 0.19% in the inter-bank market on Thursday. At close, the currency settled at 284.22, a gain of Re0.54. On Wednesday, the currency settled at 284.76. Pakistan's law enforcement agencies have reportedly launched a crackdown against foreign currency smugglers, aiming to prevent the illegal outflow of currencies such as US dollars to neighbouring countries, including Afghanistan and Iran. The raids led to some appreciation of the rupee against US dollar on Wednesday, said Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan on Wednesday. Internationally, the euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday. It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting US interest rates more aggressively, would be meeting with the Fed chief. Markets were paying close attention to various tariff negotiations. The European Union and the US are moving towards a trade agreement that could include a 15% US baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the US dollar. The dollar index eased slightly to 97.15. Oil prices, a key indicator of currency parity, rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories. Brent crude futures gained 24 cents, or 0.4%, to $68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures climbed 25 cents, or 0.4%, to $65.50 per barrel. Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump's tariff deal with Japan.
