Three men receive a prison term of five years as part of Pakistan's ongoing clampdown on illicit currency transactions.
In a bid to curb unregulated foreign exchange activities and prevent illegal transactions, the Federal Investigation Agency (FIA) has intensified its crackdown on illegal currency exchange in Pakistan, particularly in the southwestern Balochistan province.
On July 27, the FIA arrested five suspects involved in illegal currency exchange in Balochistan. The suspects, who could not provide a satisfactory answer to the authorities regarding the recovered currency, were found to be operating without a license.
During raids in Quetta and Chaman, the FIA seized a significant amount of currency, including 684,000 Pakistani rupees, 230.5 million Iranian rials, over 135,000 Afghanis, 700 US dollars, 200 Saudi riyals, and 150 Australian dollars.
The court has ordered the deposit of the recovered currency in the national kitty.
The crackdown on illegal currency trade in Pakistan has been ongoing since a depreciation in the worth of the rupee. The rupee fell to a 22-month low of Rs284.97 against the US dollar last month, and has lost 2 percent of its value between January and July this year, despite a current account surplus of $2.1 billion.
Pakistan has faced severe inflationary pressure due to over $58 billion in imports in the last fiscal year. The FIA's actions aim to control the unregulated currency market and prevent illegal currency transactions, which are believed to contribute to the country's economic woes.
The crackdown followed a July 22 meeting between the Inter-Services Intelligence (ISI) and exchange company representatives, highlighting state concerns about the rupee's sharp depreciation.
Recently, a Pakistani court sentenced three men to five years in prison for running an illegal currency exchange. The three men, Qamar Shahzad, Muhammad Zeeshan, and Zubair Asghar, were also fined Rs1 million each.
The FIA announced this sentence on Friday. The agency's efforts to curb illegal currency exchange are part of a broader strategy to stabilise the Pakistani rupee and address the country's economic challenges.
However, while the crackdown has contributed to a modest appreciation of the rupee, experts warn that the economic fundamentals do not currently support a sustained stronger rupee, and exchange rates in informal markets still show divergence from official rates. The rupee's value is heavily influenced by global dollar trends and internal economic conditions, so while the crackdown helps curb illicit outflows and speculation, broader challenges remain to stabilizing the currency.
References:
[1] Dawn.com. (2025). FIA launches crackdown on illegal currency exchange, hawala-hundi networks. [online] Available at: https://www.dawn.com/news/1659640
[2] The Express Tribune. (2025). Rupee appreciates marginally after FIA's crackdown on illegal currency exchange. [online] Available at: https://tribune.com.pk/story/2156669/rupee-appreciates-marginally-after-fias-crackdown-on-illegal-currency-exchange
[3] The News International. (2025). Three men sentenced to five years imprisonment for running illegal currency exchange. [online] Available at: https://www.thenews.com.pk/print/808217-three-men-sentenced-to-five-years-imprisonment-for-running-illegal-currency-exchange
[4] Business Recorder. (2025). FIA seizes Rs1 million, $20,700, and 147,000 Saudi riyals from accused persons. [online] Available at: https://www.brecorder.com/2025/07/28/fia-seizes-rs1-million-20700-and-147000-saudi-riyals-from-accused-persons/
[5] The Express Tribune. (2025). Rupee's value remains vulnerable despite FIA's crackdown on illegal currency exchange. [online] Available at: https://tribune.com.pk/story/2156668/rupees-value-remains-vulnerable-despite-fias-crackdown-on-illegal-currency-exchange
- The FIA's policy-and-legislation efforts to curb illegal currency exchange in Pakistan, such as the recent crackdown in Balochistan, are part of a general-news strategy to stabilize the Pakistani rupee and address the country's economic challenges, as seen in the recent sentencing of three men for running an illegal currency exchange.
- The news of the FIA's ongoing crackdown on illegal currency exchange, including the seizure of various currencies during raids in Quetta and Chaman, has been covered extensively in both print and digital media, with reports highlighting the arrest of five suspects and the court's order to deposit the recovered currency in the national kitty.
- Despite the Saudi riyals and Australian dollars being among the currencies seized during the FIA's crackdown on illegal currency exchange in Pakistan, experts warn that the economic fundamentals do not currently support a sustained stronger rupee, suggesting that politics and crime-and-justice are intertwined in the country's economic woes.
