KARACHI: A two-star general has called for a crackdown on currency smugglers to bring down rising dollar rates, the Exchange Companies Association of Pakistan (ECAP) said in a statement.

In a meeting with ECAP members on Tuesday, Maj Gen Faisal Naseer of the Inter-Services Intelligence (ISI) inquired about the recent sharp hike in the dollar exchange rate.

ECAP Chairman Malik Bostan explained that the surge is due to the reactivation of currency smuggling mafias who are smuggling dollars and other foreign currencies to Iran and Afghanistan, according to a statement issued after the meeting.

According to Mr Bostan, Maj Gen Naseer responded positively and immediately ordered law enforcement agencies to launch a crackdown against currency smugglers and arrest them.

Following the meeting, the smuggling mafia went underground, Mr Bostan claimed. He said that FIA teams had conducted major raids based on intelligence, which led to a drop in the market dollar rate from Rs288.60 to Rs288.

Meanwhile, in the interbank market, the rate dropped from Rs285 to Rs284.80.

Mr Bostan predicted that if FIA continues its crackdown on currency smugglers and hundi-hawala operators, the dollar rate could drop further to Rs270, and eventually, even Rs250.

Published in Dawn, July 24th, 2025