The Pakistan Army has stepped in to curb black market dollar trading as the rupee faces fresh pressure due to hoarding, smuggling, and banking restrictions.
According to Reuters, a senior official from Pakistan’s intelligence agency held a meeting this week with leading currency exchange companies, signaling the start of a coordinated crackdown on illegal currency trading.
The move mirrors a similar army-backed intervention in 2023, which had successfully halted a steep rupee decline at that time.
Following the meeting, the Federal Investigation Agency (FIA) and other security forces launched operations against unauthorized currency dealers. Many illegal traders have reportedly gone into hiding.
Malik Muhammad Bostan, chairman of the Exchange Companies Association of Pakistan, confirmed that the open-market dollar rate dropped by Rs. 1 after the enforcement action, thanks to improved market supply and reduced speculative activity.
Currency experts believe that sustained action against the black market could help stabilize the exchange rate, but warn that structural reforms are needed to prevent recurring volatility.
