The US Dollar could see a sharp decline against the Pakistani Rupee following the recent crackdown on illegal currency trading and smuggling, according to Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP).
Speaking on a local TV program, Bostan said the dollar is likely to fall to around Rs. 280 in the coming days and could even dip to Rs. 270 if the enforcement drive continues effectively.
He added that the recent shortage of dollars in the open market has now been resolved, and exchange companies will have sufficient supply to meet customer demand.
This statement follows a Reuters report confirming that a senior official from Pakistan’s intelligence agency met with currency dealers earlier this week to address the rupee’s decline and to curb black market trading.
However, not everyone agrees with this optimistic view. Some financial analysts predict the rupee may weaken further, potentially crossing Rs. 300 by December 2025, while the majority expect it to remain in the Rs. 285-290 range by year-end.
The crackdown on the hawala-hundi network, illegal hoarding, and cross-border smuggling is expected to improve dollar availability and reduce pressure on the rupee in the short term.
