by In a decisive move against illegal currency trading, Pakistani authorities have sentenced three illegal currency dealers to five years in prison as part of the government’s ongoing crackdown on the dollar black market. The verdict underscores Pakistan’s firm resolve to stabilize the foreign exchange market and curb illicit financial activities that have long undermined the country’s economy.
A Blow to the Black Market
The convicted dealers were found guilty of engaging in unauthorized foreign currency trading, hoarding U.S. dollars, and manipulating exchange rates outside the official banking channels. Such activities not only fuel market instability but also contribute to the widening gap between interbank and open market rates.
Officials from the Federal Investigation Agency (FIA) and the State Bank of Pakistan (SBP) have been actively coordinating to track down illegal operators, seize undeclared cash reserves, and bring offenders to justice.
Government’s Zero-Tolerance Policy
The crackdown is part of broader economic reforms aimed at:
- Eliminating market manipulation by unauthorized dealers.
- Ensuring fair exchange rates through regulated currency markets.
- Supporting the rupee’s stability against the U.S. dollar.
- Complying with FATF guidelines to curb money laundering and illicit financing.
Impact on the Market
Following the arrests and sentencing, the open market dollar rate saw increased stability, with fewer signs of speculative trading. Analysts believe that such legal actions will deter other illegal dealers and help bridge the gap between official and unofficial exchange rates.
A Step Toward Economic Stability
By sending a strong message to black market operators, the government aims to restore investor confidence and support its push toward a transparent, regulated, and sustainable currency exchange environment.
As the crackdown intensifies, authorities have warned that more arrests are expected in the coming weeks, signaling that Pakistan’s fight against illegal currency trading is far from over.
