WE have seen how the American dollar came tumbling down after the government along with law-enforcement agencies took steps to curb the smuggling of greenbacks from Pakistan to Afghanistan. But what we tend to not notice is the inefficiency and indifference of the State Bank of Pakistan (SBP). It failed in curbing the massive manipulation in trade of foreign exchange by the prominent commercial banks and currency exchange companies when the dollar-starved country of ours needed it the most.

Unfortunately, the lone regulator of banking and money matters in the country had been in a deep slumber throughout the unscrupulous buying and selling of the greenback by entities supposed to be operating under the central bank.

But, as usual, despite having a legion of officers to stop the wrongdoings occurring in the banks and exchange companies, the SBP failed miserably; so miserably that people have even hinted at possible complicity at some level. Instead of swinging into action, the regulator had been sweeping things under the carpet till a national crisis erupted.

What the SBP could not do, the army chief did, and how. The outflows have been brought under control, and the exchange rate has stabilised in favour of the local currency. The credit

must go to Pakistan Army. Left to the SBP, the exchange rate would have decimated the national economy by now. The government should set things right at the dysfunctional central bank.

Aslam Aziz Khanzada
Hyderabad

Published in Dawn, October 31st, 2023