Federal Budget

Raids on houses planned to recover stashed dollars as rupee makes more gains

Raids on houses planned to recover stashed dollars as rupee makes more gains

Business

Rupee has appreciated by Rs12.30 since the start of crackdown; Dollar exchanged for Rs294.80

ISLAMABAD (Dunya News/Web Desk) – As reversing the rupee depreciation on a sustainable basis has become the biggest challenge for Pakistan, authorities are ready to carry out raids the houses of those involved in hoarding the US dollar.

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Security sources say these raids would be carried out by agencies with the assistance of Federal Investigation Agency (FIA) – the organisation responsible for dealing with financial crimes in the country – as next phase of the ongoingcrackdown designed to curb the practice of hoarding dollar.

The rising exchange rate in Pakistan is basically a product of artificial shortage created by these hoarders who have been making huge profits since 2018 through buying at lower price and later selling the same for higher returns.

Meanwhile, the other factor has been the smuggling of dollar to Afghanistan – a war-torn country where the exchange rate is ironically much lower despite the absence of economic or industrial activity.

However, the crackdown on currency dealers across the country, especially in Khyber Pakhtunkhwa and Balochistan along with strict monitoring along the western borders have helped improving the situation.

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According to the sources, a list of the houses, which are suspected to be centres of dollar hoarding, has been prepared with the assistance of the money exchange companies’ record which also revealed the names of those buying a huge amount of dollars.

The decision comes as credible information about using houses for stocking dollar by the mafia involved in this practice was received during the recently-launched crackdown.

EFFECTS ALREADY VISIBLE

The rupee has been moving in the upward trajectory after the government went for a crackdown on illegal movement of dollar in only licenced but also the black market.

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On Tuesday morning, the early morning trading saw the interbank exchange rate dropping by another Rs1.15 as the dollar was available for Rs294.80 against the previous day’s closing value of Rs295.95.

It means the dollar has depreciated by Rs12.30 after reaching the historic high of Rs307.10 in terms of official exchange rate.

Similarly, the exchange rate in open market was recorded at Rs297.50 after the rupee gained Rs1.50 against the greenback after being traded for over Rs330 not long ago. The rate in black market was even higher – more than Rs340.