Islamabad 25 July: Pakistan’s intelligence agency, backed by the military, has launched a sweeping crackdown on illegal dollar trading in the black market following a decline in the Pakistani rupee’s value.
According to news reports, the Exchange Companies Association of Pakistan confirmed that authorities are intensifying efforts to curb illicit currency transactions, aiming to stabilize the nation’s economy.
This operation mirrors a similar intervention in 2023, when security forces successfully stabilized the rupee’s exchange rate by targeting illegal currency markets. The current crackdown, led by the Federal Investigation Agency (FIA), focuses on money dealers engaging in clandestine dollar trades at inflated rates, which exacerbate pressure on the rupee.
According to recent data from the State Bank of Pakistan, the country’s foreign exchange reserves stood at $14.7 billion as of July 18, 2025, a decline from $15.2 billion in June 2025, reflecting a depletion of approximately $500 million in a month. The rupee has depreciated by 3.2% against the US dollar in the open market this year, with the dollar trading at approximately Rs. 278 as of July 24, 2025.
Since the crackdown began, early results are promising. The open market dollar rate dropped by Rs. 1 to Rs. 277 within hours of the operation’s launch, as illegal traders have reportedly gone into hiding to evade arrest. Authorities believe that curbing black market activities is critical to controlling the dollar’s value, stabilizing the rupee, and restoring confidence in Pakistan’s financial system.
READ MORE: State Bank to Launch Digital Currency Pilot
Officials are urging the public to use only authorized banks and exchange companies for foreign currency transactions. “Illegal money exchanges undermine the economy and fuel unfair profits,” said a spokesperson for the FIA. “We encourage citizens to support legal channels to strengthen the rupee and protect our economic stability.”
The government hopes that sustained action against black market trading will alleviate pressure on Pakistan’s dwindling foreign reserves and foster trust in the country’s regulated financial institutions.
