FIA Seizes US Dollars in Crackdown on Illegal Currency Trade

The Federal Investigation Agency (FIA) has intensified its efforts to stop the rising trend of illegal currency trade across Pakistan, with a major crackdown resulting in the seizure of large amounts of US dollars in Islamabad and other cities. According to sources, this move is part of a countrywide operation aimed at dismantling hawala-hundi networks and curbing foreign currency smuggling, which have been significantly affecting the value of the Pakistani rupee.

Officials reported that the raids were conducted after receiving credible intelligence about the movement of illegal money and foreign exchange dealings being carried out without any license. The FIA Commercial Banking Circle led the raids on several unauthorized money changers operating in residential and commercial areas. These operations led to the arrest of multiple suspects and the recovery of huge sums of foreign currency, including a considerable quantity of US dollars, euros, and other international notes.

The confiscated amount also included counterfeit notes. Authorities confirmed that around 4,500 fake US dollars were seized from two suspects during one of the raids in Karachi’s Saddar area. The suspects were allegedly supplying counterfeit currency to local buyers by posing as legitimate money changers. Alongside the fake notes, mobile phones, computers, ledgers, and cash counting machines were also taken into custody as evidence.

In another operation in Karachi’s DHA and Soldier Bazaar areas, a raid was carried out on a private office where illegal currency exchange activities were taking place. The raid resulted in the recovery of over $9,000 in genuine US dollars, €1,500 in euros, and a large sum in Pakistani rupees. The suspects arrested in this case included a bank official, which has raised concerns about possible insider involvement in the illegal network.

These actions are part of a broader initiative launched after continuous pressure from the Ministry of Interior and financial authorities. The illegal movement of dollars through hawala-hundi channels and unregistered dealers has been one of the major reasons behind the fluctuation of the rupee and the growing gap between the interbank and open market exchange rates.

The FIA stated that since the start of this crackdown, over 256 raids have been conducted nationwide. This includes the arrest of more than 280 individuals, the registration of 213 FIRs, and the recovery of over Rs 762 million worth of local and foreign currency. The State Bank of Pakistan (SBP) has also been working in coordination with the FIA to identify unlicensed exchange dealers and to take appropriate legal action against them.

The recent crackdown seems to have had an immediate effect on the market. The Pakistani rupee recovered by at least one rupee against the dollar in the open market, giving a temporary sigh of relief to importers and the general public who had been struggling with increasing prices due to currency devaluation.

Financial analysts have welcomed this move, saying that strict action against illegal forex operations will help bring economic stability and restore investor confidence. They also warned that such operations must continue consistently; otherwise, the market will once again fall prey to speculative dollar trading.

A senior FIA official said that the agency will continue its crackdown without any compromise and that no one involved in the illegal currency business will be spared, regardless of their position or connections. The agency has also appealed to the public to avoid dealing with unauthorized money changers and to report any suspicious activity related to foreign exchange trade.

This crackdown is a clear message that the government is serious about controlling the black market and stabilizing the economy. As Pakistan continues to face foreign exchange reserves challenges and import financing pressures, cracking down on these illegal currency routes is being seen as a vital step in protecting the national economy.

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