Currency smugglers: LEAs decide to intensify crackdown
According to the Exchange Companies Association of Pakistan (ECAP), the action followed a meeting between ECAP Chairman Malik Muhammad Bostan and members with Director General (C) ISI, Major General Faisal Naseer, at his office in Islamabad on Tuesday.
According a statement issued by the ECAP, during the meeting, Major General Faisal Naseer inquired about the reason of recent sharp increase in the exchange rate. In response, Malik Bostan explained that the surge is due to smuggling of dollars and other foreign currencies to Iran and Afghanistan.
Additionally, he highlighted that agents of these smugglers trap customers outside legal exchange companies by offering better rates and then they take these customers to secret offices to buy foreign currencies at black market rates. This move of smugglers is preventing customers from reaching legal exchange counters and, due to higher rates in the black market the supply of dollars is decreasing daily.
Bostan further mentioned that due to new FBR regulations, any purchase above Rs. 200,000 made in cash (rather than through banking channels) results in the imposition of tax on the seller.
Consequently, many non-filer customers, to hide their identities, are buying and hoarding foreign currencies from the black market at large scale. He suggested that the government should not impose any tax on purchase of $2,000 in foreign currency. This would reduce the demand for dollars and help bring down the exchange rate quickly, he added.
According to Malik Bostan, Major General Faisal Naseer responded positively and said he would discuss this proposal with the government. Moreover, he immediately ordered law enforcement agencies to launch a crackdown on currency smugglers and arrest them. As a result of this action, the smuggling mafia reportedly went underground by Wednesday.
Bostan further said that on Wednesday FIA teams conducted intelligence-based raids, which led to a drop in the market dollar rate from Rs. 288.60 to Rs. 288, and in the interbank market, the rate dropped from Rs. 285 to Rs. 284.80 per dollar.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
40 minutes ago
- Business Recorder
Rs225m irregularities reported in CDA accounts
ISLAMABAD: The Draft Audit Report 2024–25 reports over Rs 225 million in losses linked to delays, land issues, and unadjusted payments involving the Capital Development Authority (CDA). A major portion of the reported loss stems from delays in the execution of a federal project for the establishment of a boys' college in Margalla Town. Although the project was approved in 2019 with a planned completion period of two years, delays in land possession and rising construction costs led to a significant increase in the project's total cost. Payments for the land were made in installments over more than a decade, but possession was handed over only in 2021. By mid-2023, the project had achieved only minimal progress, and the lease agreement for the land had still not been finalised. Another observation in the report relates to the use of land belonging to the International Islamic University Islamabad. The CDA failed to remove its asphalt plant and MPO Directorate from university premises, despite official directives. It also issued allotment letters for additional land that the university had not agreed to give up. The matter remains unresolved and continues to pose environmental and security concerns for the university community. Copyright Business Recorder, 2025
Business Recorder
40 minutes ago
- Business Recorder
K-IV project: CM slams Centre for allocating only Rs3bn this year
KARACHI: Chief Minister Sindh, Syed Murad Ali Shah, while emphasising the urgent need to address Karachi's water challenges, criticised the federal government for allocating only Rs 3 billion this year out of the Rs 78 billion it had committed for K-IV project. In contrast, he said, the Sindh government has provided complete funding for all associated components of the important K-IV project. 'Four major sub-projects under K-IV are currently underway and Rs 50 billion project to expand the capacity of the water feeders will be completed this year. Another Rs 170 billion initiative is bringing water from Keenjhar Lake to Karachi, and a power plant is being installed via STDC to support two major pumping stations,' he added while inaugurating the 20th 'My Karachi-Oasis of Harmony' International Exhibition at the Expo Center Karachi on Friday. The chief minister announced that the Sindh government has completed the construction of a new 100 MGD Hub Canal which will be inaugurated on August 14. The old Hub Canal will also be restored and upgraded to 100 MGD capacity. By the end of this year, Karachi is expected to start receiving 200 MGD water from Hub Dam. He also highlighted the importance of the Dumlottee water supply project for southern Karachi and anticipated that 150 MGD additional water will be supplied to the city during the current year. He demanded that the federal government must increase Karachi's water allocation from Hub Dam, especially as water availability has improved due to climatic conditions. The chief minister, while warmly congratulating the Karachi Chamber on successfully organising the landmark 20th edition of the exhibition, stated that it has become a true symbol of Karachi's entrepreneurial energy, resilience, and cultural vibrancy. Announcing the commencement of Independence Day celebrations across Sindh on Friday (Aug 01) which will continue until August 14 under the theme 'Maarka-e-Haq,' he said that the theme reflects Pakistan's ongoing struggle for sovereignty, justice, and unity. Referring to the regional tensions, he stated that the people of Pakistan have proven their unity and resolve by giving a robust response to India's May 2025 conspiracy. Highlighting development issues, the chief minister referenced the 2015–16 World Bank gap analysis, which revealed that Karachi required Rs 3 trillion in investment to meet the standards of a modern metropolitan city. He emphasised that such large-scale projects cannot be undertaken by the provincial government alone and require active participation from the federal government. Addressing the issue of natural gas, the chief minister lamented that although Sindh produced 70 percent of Pakistan's gas, it does not receive its constitutional share. He criticised the federal government for not convening the Council of Common Interests (CCI) meeting for the past one and a half years and vowed to raise Sindh's case forcefully in the next session. He reminded that according to the Constitution, the CCI must meet every three months. He also called on citizens to fulfill their legal responsibilities, particularly by registering their vehicles and paying taxes, instead of blaming law enforcement agencies for lapses. He reassured the business community that the Sindh government stands shoulder to shoulder with them and with the Karachi Chamber. Murad Ali Shah strongly asserted that any hostile intentions toward Pakistan would be met with a firm response. 'Pakistan enjoys robust trade relations globally and every country is keen to do business with Pakistan,' he added. Chairman BMG Zubair Motiwala, in his remarks, paid glowing tribute to Sindh government for extending full support and cooperation to KCCI in dealing with numerous issues being faced by the business community in Karachi. He stressed that the business community needs more support in dealing with numerous issues which have been pending since long, particularly the gas shortages. He also sought CM's help in resolving the water shortages being faced by the industries of Karachi by expediting development work of K-IV project that must be completed at the earliest possible time. Highlighting the purpose and salient features of My Karachi Exhibition, he appreciated Foreign Diplomats for their participation in 20th My Karachi Exhibition which was being staged every year to portray the positive image of Karachi and this exhibition is not only recognized in Pakistan but all over the world. 'This exhibition successfully showcases what is being produced in Pakistan and how excellently the manufacturing and trading sectors are performing,' he added while requesting the diplomats to convey a positive message about Karachi in their reports to respective countries. President KCCI Jawed Bilwani, while delivering the welcome address, expressed deep appreciation to the Sindh Government for choosing 'Marka-e-Haq' as this year's theme for Independence Day celebrations, calling it a meaningful and inspiring tribute to the truth of the Pakistan Movement and the valiant role of Pakistan's armed forces in defending the nation against aggression. Highlighting the origin and journey of the 'My Karachi' Exhibition, President Bilwani recalled that the event was initiated in 2004 under the dynamic leadership of the late Siraj Kassim Teli, founder Chairman BMG, at a time when Karachi was being negatively portrayed globally. 'The exhibition was envisioned to show the world that Karachi is not only a peaceful city but also the economic lifeline of Pakistan,' he said. He said, 'Despite repeated demands, Karachi's only Expo Center has yet to be upgraded to international standards. We urge the Sindh government to also establish a separate world-class Expo Centre in Karachi at the provincial level to help showcase Sindh's products globally.' He further highlighted the severe shortage of water in Karachi, pointing out that while the city's daily demand exceeds 1,200 MGD, supply remains limited to 550–650 MGD. 'Over two decades have passed listening to promises about the K-IV water project, yet it remains incomplete. On top of that, Karachiites are subjected to the highest water tariffs in the country. Is this the reward for contributing the most in taxes?' he questioned. President Bilwani also raised serious concerns over gas shortages, despite Sindh producing over 70% of Pakistan's natural gas. He urged the Sindh government to actively pursue the province's constitutional right to a fair share of gas supply from the federal government. Touching upon Karachi's deteriorating infrastructure, he emphasized the urgent need for rehabilitation of roads, drainage systems, removal of encroachments, and improved traffic management. He also called for expedited work on delayed development projects and a robust strategy to tackle rising street crime through enhanced policing, accelerated implementation of the Safe City Project, and upgraded surveillance systems. Sindh Minister for Industries and Production Ikramullah Khan Dharejo, Sindh Minister for Local Governments Saeed Ghani, Additional IGP Jawed Alam Odho, Vice Chairman BMG, Vice Chairman BMG Mian Abrar Ahmed, Senior Vice President Zia ul Arfeen, Vice President Faisal Khalil, Chairman Special Committee for My Karachi Exhibition Muhammad Idrees, diplomats from friendly countries, KCCI Managing Committee Members and others distinguished figures were also present on the occasion. Copyright Business Recorder, 2025
Business Recorder
40 minutes ago
- Business Recorder
BML reports first ever half-year PBT of Rs1.44bn
KARACHI: Bank Makramah Limited (BML) has achieved a historic milestone by reporting a profit before tax of Rs 1.44 billion and an after tax profit of Rs 707 million for the half-year ended June 30, 2025 – the first profit declared by the Bank in more than a decade. These results, approved by the Board of Directors at its meeting held on August 1, 2025, reflect a remarkable turnaround from the loss before tax of Rs 2.44 billion reported for the corresponding period last year, an improvement of Rs 3.88 billion. Earnings per share (EPS) also improved to Rs 0.11 from a negative Rs 0.22 during the same period in 2024. BML Chairman Abdulla Nasser Abdulla Hussain Lootah said, 'The Bank's strong performance has been driven by improved net mark-up income, record recoveries of legacy non-performing loans, a significantly improved deposit mix that has reduced the average cost of deposits, and exceptional Treasury gains during the period. These results reflect the success of BML's broader turnaround strategy, he further stated that this milestone is proof of the dedicated efforts and commitment of our teams, we have strong faith in the banks future and Pakistan's reviving economic fundamentals.' Subsequent to the half-year period, the Bank has further bolstered its position through the successful sale of a strategic asset for Rs 12 billion and an injection of Rs 5 billion from its Sponsor as advance against share capital. The Scheme of Arrangement is also in the final stages filed before the Islamabad high Court and expected to further strengthen the Bank's capital base once concluded. President and CEO Jawad Majid Khan stated these historic results mark a decisive turning point for the Bank, and validates the tireless efforts of BML's management and employees and also sends a strong signal of renewed strength and stability to the customers, investors, and the market at large. With the restructuring efforts nearing conclusion, the management is confident that BML is now firmly on the path toward sustained profitability and growth. The Board of Directors expressed its deepest gratitude to the Sponsor and chairman for their unwavering support and long-term commitment which has been instrumental in the Bank's revival journey. Copyright Business Recorder, 2025
