On Wednesday, government officials said that they had launched a wide-ranging crackdown on those responsible for the smuggling and stockpiling of US dollars, as well as the organized criminal cartels responsible for such crimes.
Those responsible for assisting the smuggling, including government officials, as well as their customers, will be held accountable. According to our sources, a long-term crackdown has been planned and lists have been compiled.
The commodity and currency markets, according to these same sources, will be “transformed” as a result of the sweeping policy changes already being implemented.
The government will also establish and enhance monitoring systems at land, sea, and airports to prevent the unlawful movement of products and currencies in order to fully enforce the new policies.
The customs authorities have been tasked with setting up a monitoring system at irregular border crossings by interim Prime Minister Anwaarul Haq Kakar to curb illegal imports.
After the rupee-dollar parity in inter-bank trading surpassed Rs300 for the first time in Pakistan’s history due to high demand for dollars due to imports, dollarization of the economy, smuggling, and financing of Afghanistan’s imports, the government decided to crack down on the dealers.
Law enforcement in Pakistan has been complicit in the smuggling of dollars to Afghanistan through the use of orange crates, but they have been unable to stop the practise.
It appears that state institutions are not adequately protecting our borders and international airports, which have become hubs for illegal activity. Even though it caused hardship for the general populace, the central bank’s decision to reduce the maximum amount of U.S. dollars that may be taken out of the country to $5,000 per person had no effect on the rate of emigration.
Financing illicit goods from Iran, namely diesel and edible oil, and payments for Afghan transit commerce were cited as important factors behind the strong demand for dollars.
They noted that institutions tasked with preventing smuggling and ensuring border security would need to be involved if fuel were to be smuggled all the way from Iran into Pakistan. Pakistani customs officers report that the smuggled diesel price is paid to Iran in U.S. dollars.
Afghan transit commerce, according to the customs authorities, was also financed by purchasing dollars on the Pakistani market, albeit the exact amount was unknown.
