FIA seizes currency worth Rs40 million in Lahore as crackdown against dollar hoarding begins
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The Federal Investigation Agency (FIA) on Sunday seized currency worth Rs40 million and arrested three people in Lahore, the interior ministry said, as a government crackdown against the hoarding of US dollars and speculative currency trade gained momentum.
The action was taken on the directives of FIA's Punjab Zone-I Lahore director, Mohammad Waqar Abbasi, who instructed authorities to take strict action against those involved in dollar hoarding, money laundering, hundi/hawala (illegal money transfer) and "illegal speculation" regarding the de-valuing of Pakistani rupee, the interior ministry said in a press release.
According to government directives cited by the ministry, the "dollars were hoarded to make rupee weaker in [the] market. This action caused [an] artificial demand of dollar and its rate increased artificially."
Six teams were thus constituted by the FIA, which carried out raids simultaneously at all money exchanges in Lahore and inspected their records.
During the action, currency "worth crores of rupees" was taken into possession from DD Exchange Company Lahore, the press release said. A second interior ministry statement stated the currency seized amounted to Rs40 million.
Three persons were also taken into custody and first information reports (FIRs) were registered against them.
"Investigation is in progress and startling revelations are expected from them especially against hoarders of dollars," the ministry said.
Information Minister Fawad Chaudhry had announced on Twitter that “a full-fledged operation against dollar hoarding and speculative currency trade” would be launched by the FIA, as signs of panic started appearing in foreign currency markets after the dollar touched Rs148 in open trading on Friday.
A State Bank spokesperson had then told Dawn that there was no law to arrest any person for buying dollars or keeping foreign exchange as investment, but if any institution was found involved in currency hoarding to manipulate the exchange rate, it could be investigated.
“We have a mechanism with FIA to probe a case if there is any violation of banking laws and the State Bank can ask FIA to investigate such violations,” he had added.
Finance Minister Asad Umar has ruled out a further devaluation of the rupee, which has lost about 25 per cent of its value over the past year, urging people to invest in the stock market and not waste money buying dollars.
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Comments (70) Closed
Apr 07, 2019 06:48pm
Good first step by the Govt. Now catch the bigger fish especially in Karachi.
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Apr 07, 2019 06:49pm
Now watch as a currency crisis starts. Genuine travellers will not be able to buy foreign currency. Rates will go up further. The government need to understand that not all problems can be solved by force.
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Apr 07, 2019 06:52pm
That is not a good sign. Under what authority, what law they seized the currency? That is just a bad tactic to disrupt the business. Its open market, the rates are not the result of insider trading it is just on the news that once you get more loans from IMF than dollar will go up. Dollar will go up no matter what you do. Word of the day is "living beyond means"
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Apr 07, 2019 06:56pm
40 millions PKR???...!!! That’s just 2,75,000 us$. Nothing.
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Apr 07, 2019 06:56pm
Target dealers in Karachi
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Apr 07, 2019 06:57pm
Good job, FIA.
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Apr 07, 2019 07:06pm
Too little too late...
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Apr 07, 2019 07:06pm
That is like 270 thousand USD not a large sum by any measure. Enough to send one kid to college in the US.
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Apr 07, 2019 07:21pm
So PTI was bashing PMLN for artificially controlling the dollar rate, but they are doing the same in the most bizarre manner. Also I have seen that it seems all problems lie in Punjab, whereas the most transparent businessmen live in KP and Karachi. The operation is also launched in Punjab only. Anyway does this means that PMLN was right all along and Imran Khan and Asad Umar were doing politics in the past?.
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Apr 07, 2019 07:26pm
PTI get your act together- not the little people. Foreign exchange and $$$ are in homes and bank lockers of politicians, leaders and prominent persons.
Once again, Check Jatti Umrah, model Town and their residences, farm houses where these guys hide hard cash.
They buy foreign currencies with cash to make a shortages.
REQUIRE foreign exchange dealers and banks to report back to government for bigger exchanges.
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Apr 07, 2019 07:27pm
PTI go after the big people.
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Apr 07, 2019 07:37pm
40 million PKR worth foreign currency was creating a shortage. Pakistan's foreign exchange market is like really tiny. minuscule is the word.
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Apr 07, 2019 07:40pm
Keep up the good work !!
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Apr 07, 2019 07:41pm
Private money exchangers are hoardings oreign currency and causing devaluarion of local.currency! The State Bank should regulate and issue dollars only for travelling purposes to eligible individuals.
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Apr 07, 2019 07:47pm
Government must destroy this mafia network for the sake Pakistan despite previous Governments having done nothing to curtail their illegal activities, The reason was the corrupt leaders using them all the time. Now IK has an opportunity to regulate the system.
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Apr 07, 2019 07:49pm
So exchange company is not even allowed to keep 40 million rupees worth of currency now?? This is loot by govt
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Apr 07, 2019 08:15pm
Great Going Pakistan. Keep it up. To reduce dependency on Dollors, we should use gold to do trades
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Apr 07, 2019 08:20pm
Please audit records of foreign currency dealings of private banks in recent months and find many surprises.
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Apr 07, 2019 08:20pm
Instead of addressing real issues in the economy, Govt is using such lollypops to keep the people busy and create an illusion that such directionless actions shall bring back the lost glory of Pak Rupee.
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Apr 07, 2019 08:22pm
Is this going to appreciate rupees?
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Apr 07, 2019 08:28pm
Strict steps are needed to check all sorts of negative speculation in our faltering economy. The situation is rapidly deteriorating day by day.
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Apr 07, 2019 08:46pm
Amazed to see people congratualing for such tiny amt .. probably govt creating execuse / creating scapegoat for potential crisis of tomorrow
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Apr 07, 2019 08:57pm
PMLN and PPP leaders have made Trillions of Rupees thru corruption in last 10 years and they can play havoc with the economy at their will.The upward drive in FC is due to the corrupt elements have planned to weaken the government and buying FC for hoarding as well making short and panic in the market.It is a big game.General public must not buy FC,rather sell their FC.After few days it will again settle at Rs 139.
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Apr 07, 2019 09:00pm
Half of the Pakistani money can be recovered by NAB employees.
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Apr 07, 2019 09:04pm
This is disappointing.
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Apr 07, 2019 09:06pm
More like an earning day for the FIA. Day light robbery by them.
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Apr 07, 2019 09:06pm
Speculative trading wether in currency or stock market provides an important function, which is that of liquidity and is a sign of a mature market. Either Pakistani leaders have no trust in their own system being a mature system or they are trying to create diversionary tactics. As has already been said by others, $275,000 is really a drop in the bucket. If the valuation of Rupee has taken a nose dive in the open market, it shows lack of confidence in the Rupee, at least in the short-term. If the leaders truly believe that Pakistan is on the right path, this should be just a temporary phenomenon, and it will come back up. There is no need to panic. However, leaders of the country must know something which general public does not.
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Apr 07, 2019 09:07pm
40 million PKR? That was the laundry bill of Ambani's son's marriage. Ridiculous. N the kind of disruption it will generate is not even funny. PTI will ruin Pakistan completely!
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Apr 07, 2019 09:11pm
@Arif Khan, but it's not your govt! duh!
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Apr 07, 2019 09:11pm
@ukasha, but who cares? go find a criminal and shut up.
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Apr 07, 2019 09:12pm
@Hafeez, too fake.
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Apr 07, 2019 09:20pm
40 million is hardly any money
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Apr 07, 2019 09:27pm
Go after Shrief's, Zardari and other politicians who are keeping in Billions of dollars and British pounds in their homes, bank lockers and hidden in their farm houses.
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Apr 07, 2019 09:29pm
This shows how much strong the grip of corrupt mafia is. Thay r trying everything to fail this govt, not thinking about Pakistan
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Apr 07, 2019 09:32pm
hoarding US DOLLAR is a crime?
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Apr 07, 2019 09:36pm
Nabbing dollar hoarders should result in currency dollar not pkr
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Apr 07, 2019 09:36pm
PTI another MQM of Punjab, now only there targets to ruin Punjab , just like MQM did during Musharaf era.
They working with the assistance of higher ups to divide Pakistan into four pieces
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Apr 07, 2019 09:38pm
Stealing forex from dealer forcefully ..
This shows .. authority don't know how to generate Forex..
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Apr 07, 2019 09:38pm
@Vikas P. That 40 million is just from 1 of the dealers. There r hundreds of them, registered and unregistered.
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Apr 07, 2019 09:47pm
corrupt and hardened bureaucrats and elements of the previous corrupt regimes are all teaming up against PTI—— they will fail and get exhausted
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Apr 07, 2019 09:51pm
This action is just a gimmick. It will merely create panic, and will backfire.
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Apr 07, 2019 09:55pm
these desperate actions will not bring down dollar value, so far no recovery has been made from the corrupt regimes of the past - the process of law is at snail
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Apr 07, 2019 10:01pm
What ? Currency siezed from currency dealers ? How is that illegal ?
What is going on in this country ?
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Apr 07, 2019 10:14pm
This is plain looting by the govt to get some dollars in this economic crisis, created by their mismanagement. There are hundreds of money changers, if in total they were holding about 270k$, that is not illegal by any mean.
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Apr 07, 2019 10:29pm
Punish them !
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Apr 07, 2019 10:36pm
More panic in the market!
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Apr 07, 2019 10:39pm
While SBP is not supportive of the seizure of this money from DD exchange unless it is proved that we’re involved in manipulation of exchange rate, this action having backing of no such proof is premature and would send wrong message to others. The govt. must be cautious in doing something which may create further chaos in the financial market and push to value of PKR to further down, creating further financial issues of debt repayment, import of essential good and above all fast rising inflation in the country.
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Apr 07, 2019 10:47pm
The sheer financial lawlessness in the country is seriously disturbing its economic stability.
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Apr 07, 2019 10:56pm
These currency exchangers are the main people involved in illegal black money transactions. Good job to curb their activities.
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Apr 07, 2019 11:12pm
These things dont work. This is why economy need persisted and stable policies. Few arrest here and there will actually press the panic button.
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Apr 07, 2019 11:24pm
@Vikas, This amount was not creating a shortage. It is the first step in many steps to curb illegal hoarding/currency manipulation. India is no better at it nor its promised economic revival by modi, worry about that first.
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Apr 07, 2019 11:36pm
Do it in Karachi, it is 100 times more here.
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Apr 08, 2019 12:05am
correct step: There should be no open markets, people should only allowed to buy dollars through Banks and banks should work work money exchangers! There should be no open market in that sense! All currency exchange more than 3000 should be done with legal binding and filling of use form plus income tax declaration.
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Apr 08, 2019 01:30am
Good close all money changers in Pakistan. Only state bank issue foreign exchange to people by clearance from NAB and finance department. $50 per person in 1 yr
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Apr 08, 2019 01:39am
@NACParis, if the mafia has 270,000 dollars then the mafia is way poorer than a common person like me. That too for someone who has a business doing this, this much money exchanges hands in most banks in 2 hours or less. If your rate collapses on such a small amount, I find it impossible to believe.
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Apr 08, 2019 01:52am
40 million rupees = 275,000 dollars i.e peanuts as compared to the problem the country is facing. authorities need to go after the bigger players in the market, if it is supposed to be a meaningful crackdown
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Apr 08, 2019 03:55am
@Ahsan Gul, They have already scanned them bro and found nothing. Grow up now.
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Apr 08, 2019 04:45am
There should be no money exchanges at all in the country. Only banks should conduct this business as they are the most financially regulated institutions and watched over by the State Bank Of Pakistan. Nowhere in the developed foreign exchange floats as freely as in Pakistan. America, the Vatican Of capitalism, does not have these kind of exchanges.
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Apr 08, 2019 04:51am
Just as the state bank has so correctly said there’s no law against keeping foreign exchange by anyone as by law this is a financial medium of investment. This lawless attitude of arrest & confiscate is likely to create more havoc, shortage and scare in the market triggering catastrophic consequences to the already besieged economy.
The right and permanent course will be to outlaw these private exchanges and have the banks conduct this business.
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Apr 08, 2019 05:25am
now find out who is behind this hoarding of the $ !!
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Apr 08, 2019 05:48am
I think this action was long over due. People with black money misuse trade in dollars thus make pours take the brunt by making artificial demand pull in dollars against Pak Rupee. Even trade of dollars with white money should be discouraged in present scenario. Only travellers and bonafide importers should be given dollars through banks upon solid evidence.
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Apr 08, 2019 06:35am
Best course of action is to issue new currency at the rate of one(1) new Rupee to 100 existing Rupees.
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Apr 08, 2019 07:41am
Everyone knows dollar will be 180 soon. So no surprise
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Apr 08, 2019 08:15am
@Ahsan Gul, and IK stays in 4 billion house and pays 2 lac in taxes
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Apr 08, 2019 08:37am
Good work fight again this dollar mafia. Also ban all money changers. Currency exchange should only be carried out by State bank of Pakistan through banks.
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Apr 08, 2019 08:58am
this is just lame excuse to grab money from those who have earned it, it is my right to keep my money in any currency i want
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Apr 08, 2019 09:28am
Its only $270.000 but a step non the less
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Apr 08, 2019 09:30am
This will only create more chaos in the foreign exchange market and further depreciate the Rs. There has to be ready access to and movement of capital - otherwise, it is not possible to attract external or internal investment. The kind of "hoarding" and speculative trading in currency is a result of missteps and scaremongering statements being issued by the PTI administration, and bad policies such as tightening such regulations that now for all practical purposes suspends the free flow of capital.
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Apr 08, 2019 12:20pm
very clever and fast action from government.
MoneyChangers license should be cancelled or heavy fine must be imposed on such actions.
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Apr 08, 2019 03:12pm
These money launderers are also cheaters who take money from client and remit only partial part when amount is bigger. If confidential helpline is started to report such fraudsters them many such criminals will be exposed.
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