KARACHI – The government’s latest push to bring down the US dollar rate to Rs250 has hit a wall, as the currency remains scarce and the rupee continues to trade well above Rs280 in the open market.
Since July 23, authorities launched a major crackdown targeting illegal currency trade. The operation, led by intelligence agencies and the Federal Investigation Agency (FIA), resulted in raids across cities like Peshawar and Karachi, shutting down several unofficial forex outlets. Despite the aggressive measures, the dollar remains in short supply, and the rupee’s recovery has been marginal at best.
Currency dealers report that foreign currencies have become virtually unavailable at many exchange counters. While official channels quote the dollar around Rs286, the real market activity—largely shifted to encrypted apps and peer-to-peer deals—tells a different story.
Traders say that even major licensed dealers now struggle to fulfill dollar requests, pushing many users to online black-market alternatives. Exchange companies, under mounting pressure, warn that without fresh inflows, the market may seize further.
The government has also barred banks from buying dollars at higher rates, urging them to rely solely on export earnings and remittances—both of which are declining. This policy aligns with IMF conditions aimed at keeping a tight spread between the official and open market rates.
Despite these efforts, the rupee’s weakness persists. Exporters are holding back their forex earnings, anticipating further depreciation, while remittance flows remain tepid. Experts caution that unless the supply gap is addressed, the rupee will continue to face downward pressure—regardless of enforcement action.
This story has been reported by PakTribune. All rights reserved.