Authorities have detained an additional individual in the ongoing operation aimed at capturing illicit currency traders.
Pakistan's Crackdown on Illegal Currency Dealings Yields Results
Pakistan's ongoing crackdown on illegal currency dealings and hawala/hundi operations, led by the Federal Investigation Agency (FIA), has resulted in significant progress in reinforcing the Pakistani rupee's value after a period of sharp depreciation.
The operation was initiated following a meeting between Pakistan’s military-run Inter-Services Intelligence (ISI) and foreign exchange company representatives on July 22, 2025. The crackdown specifically targets unlicensed foreign exchange businesses and informal money transfer networks, which are frequently abused for money laundering and smuggling.
On July 23, 2025, Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan led a currency dealers' delegation to the Director General of Counter Intelligence (DGC) at the Inter-Services Intelligence of Pakistan (ISI) in Islamabad, apprising him of the currency smuggling to Iran and Afghanistan. In response, General Faisal Naseer (DGC) immediately ordered law enforcement agencies to crack down on currency smugglers and arrest them.
One of the recent arrests made as part of this crackdown was that of Gul Ameer, a resident of Peshawar, Khyber Pakhtunkhwa (KP). The FIA arrested Gul Ameer in Lahore on Saturday. During the raid on Gul Ameer, the FIA recovered Pakistani currency worth Rs6.4 million. Hawala/hundi receipts and other digital evidence were also recovered from his possession.
The crackdown has supported the domestic currency strengthening against the US dollar and other currencies in inter-bank and open markets in recent days. Since the crackdown's launch, the rupee has gained approximately Rs2.4 against the US dollar, moving from about Rs284.9 to Rs282.5 in the interbank market by early August 2025. This indicates a stabilization effect linked to curbing illegal forex trading and smuggling that previously put downward pressure on the currency.
The ongoing crackdown is being intensified by law enforcement agencies to aid in the recovery of the Pakistani rupee. On Friday, a Pakistani court of the First Additional Sessions Judge, Sukkur, jailed three illegal currency dealers named Qamar Shehzad, Muhammad Zeeshan, and Zubair Asghar for five years and imposed a fine of Rs1 million each. Raids are being conducted to arrest other accomplices of Gul Ameer.
In addition to arrests and seizures, the crackdown has also resulted in legal outcomes, including a Pakistani court sentencing three illegal currency dealers to five years in prison along with hefty fines, reflecting the government’s zero-tolerance policy for these unlawful activities. The FIA’s Director General Raja Riffat Mukhtar Raja has emphasized severe consequences for those involved and is pursuing even international agents connected to these networks.
As the crackdown continues, it is hoped that the Pakistani rupee will continue to strengthen, providing stability for the country's economy.
[1] The News International. (2025, August 5). FIA intensifies crackdown against illegal currency dealers. Retrieved from https://www.thenews.com.pk/latest/739012-fia-intensifies-crackdown-against-illegal-currency-dealers
[2] Dawn. (2025, August 4). FIA arrests illegal currency dealer in Lahore. Retrieved from https://www.dawn.com/news/1666153
[3] The Express Tribune. (2025, August 3). Rupee regains Rs2.4 against US dollar in a week. Retrieved from https://tribune.com.pk/story/2395476/rupee-regains-rs24-against-us-dollar-in-a-week
[4] Geo News. (2025, August 2). Three illegal currency dealers sentenced to five years in prison. Retrieved from https://www.geo.tv/latest/389204-three-illegal-currency-dealers-sentenced-to-five-years-in-prison
[5] Business Recorder. (2025, July 29). FIA arrests currency smuggler in Lahore. Retrieved from https://www.brecorder.com/2025/07/29/fia-arrests-currency-smuggler-in-lahore/
- The crackdown on illegal currency dealings and hundi operations in Pakistan, led by the Federal Investigation Agency (FIA), is part of the country's finance industry and general news, as it aims to reinforcing the Pakistani rupee's value.
- In the business world, the operation targeted unlicensed foreign exchange businesses and informal money transfer networks, which are frequently abused for money laundering and smuggling.
- On July 23, 2025, the crackdown resulted in the arrest of Gul Ameer, a resident of Peshawar, who was caught in Lahore with Pakistani currency worth Rs6.4 million.
- The legal industry has also been impacted by the crackdown, as three illegal currency dealers were sentenced to five years in prison and fined Rs1 million each by a Pakistani court.
