Dollar smuggling to Afghanistan continues to exert pressure on Pakistani currency — dealers

A Pakistani money trader checks U.S. 100 dollar notes at a currency exchange office, in Karachi, Pakistan, on May 19, 2022. (AP/File)
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Updated 13 December 2022
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Dollar smuggling to Afghanistan continues to exert pressure on Pakistani currency — dealers

  • Buying of the dollar to send to Afghanistan mainly taking place in the black market
  • Exchange rate in black market as low as Rs255, Rs21 below the prevailing selling rate

KARACHI: The emergence of a black market in Pakistan for the sale of the national currency is exerting pressure on legal currency markets, dealers said on Tuesday, blaming smuggling of the greenback to Afghanistan for shortages inside the country.

The Pakistani currency hit a historic low level of Rs239.94 on July 29, 2022, but gained its value by more than 9 percent to Rs217.79 on Sept 1, 2022, after the government decided to appoint Ishaq Dar as the new finance minister, replacing Miftah Ismail.

However, the currency could not retain the gaining trajectory and started losing against the USD amid depleting foreign exchange reserves, increasing demand for import payments, and most importantly, the continuing flow of dollars to neighboring Afghanistan, mostly through smuggling.

“There is substantial flow of dollar to Afghanistan through smuggling,” Zafar Sultan Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), told Arab News on Tuesday, adding that the buying of the dollar to send to Afghanistan was mainly taking place in the black market where the exchange rate was as low as Rs255, Rs21 below the prevailing selling rate.

The Pakistani rupee closed at Rs234 in the open market on Tuesday while the currency in the interbank market closed at Rs224.70 against the US dollar.

Responding to a question about restricted selling activities of dollars in the open market due to which people were unable to buy dollars, Paracha said: “Measures have been taken to discourage some elements who were buying dollars to sell in the black market.”  

Since the fall of Kabul to the Taliban in August 2021, the flow of international aid in dollars to Afghanistan has almost stopped, exerting pressure on Pakistan’s currency market.

“Pakistan needs dollars to not only meet its own demand for import payment but to cater to the needs of Afghanistan which is dependent on Pakistan for its dollar requirements,” Samiullah Tariq, Director Research at Pakistan Kuwait Investment Company, told Arab News.

In recent months, the government of Pakistan has taken steps to curb the outflow of dollars from the country, including by banning the import of luxury goods. However, the gradual relaxation of import restrictions has again led to a spike in the demand for the dollar.

“The measures taken by the government had substantial impact on the exchange rate, otherwise the rupee would have been much depreciated against the greenback,” Tariq said, adding that strong demand for the dollar currently existed since the government had relaxed import curbs.

On Thursday, Governor central bank Jameel Ahmed conceded that  “less than 10 percent of the country’s imports are currently subject to administrative controls. All such restrictions are temporary and will be withdrawn gradually.”

Pakistan’s official forex reserves have declined to $7.9 billion after the receipt of $500 million from the Asian Infrastructure Investment Bank (AIIB). During the week, the central bank retired $1 billion against maturing Pakistan International Sukuk and some other external debt repayments.

Dar meanwhile has vowed to bring the national currency down to Rs200 against the greenback but financial experts are not hopeful. 

“There is no room for the government to dictate the dollar,” business editor Khurram Hussain told Arab News. “To achieve that level, you need the foreign exchange reserves which are (currently) declining in Pakistan.”

With the IMF’s ninth review pending since September, Pakistan has desperately been scrambling to secure financing to meet external payment obligations for the current financial year.

Ahead of the review, Pakistan has been trying to approach allies to seek financial support, and Dar has said that he would expect to get $3 billion from a friendly country.


Police say militants behind quadcopter attacks in northwest Pakistan that killed one, injured three

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Police say militants behind quadcopter attacks in northwest Pakistan that killed one, injured three

  • No group has claimed responsibility for attacks, one of which police say targeted a police station in Bannu
  • Pakistan’s military blamed militant outfits backed by India for drone attacks that killed four children in May

PESHAWAR: One woman was killed while three others were injured in two quadcopter attacks in northwestern Pakistan this week, a police official said on Wednesday, blaming militants for carrying out the assault. 

The first attack took place on Tuesday night in the northwestern tribal Bannu district’s Srah Bangla area, District Police Officer (DPO) Saleem Abbas Kulachi said. The quadcopter strike killed a woman and left three injured, including two children, he added.

The second attack targeted the Miryan Police Station in the same district at 6:45 am on Wednesday, he said. The police officer added that an explosive-laden quadcopter deployed by the “Khawarij” had struck the facility.

Khawarij is a commonly used term by Pakistani authorities to describe extremist factions like the Tehreek-i-Taliban Pakistan (TTP).

“These attacks are being carried out by militants who have acquired and deployed quadcopters in carrying out attacks,” Amir Khan, a media officer for the regional police officer in Bannu, told Arab News.

He did not provide further details. Kulachi, however, said an investigation is underway to identify those responsible for the Miryan Police Station attack.

The TTP, which has carried out some of the deadliest attacks against Pakistan’s armed forces and civilians since 2007, has not claimed responsibility for the attack so far.

On May 19, a suspected drone strike reportedly led to the deaths of four children in Hurmuz village of the northwestern Mir Ali tehsil and injuries to five others, including a woman.

Pakistan’s military denied responsibility for the attack days later, attributing the incident to a proscribed militant network which it said was operating on “the behest of their Indian masters.”

“Initial findings have established that this heinous act has been orchestrated and executed by Indian-sponsored Fitna Al Khawarij,” the military’s media wing said in a statement.

Later in May, police said at least 22 people were wounded in another suspected quadcopter attack near a volleyball ground in Pakistan’s South Waziristan district.

The police spokesperson had said the origins and operators of the drone remained “undetermined.

Islamabad has repeatedly blamed Afghanistan-based militant groups for launching attacks inside Pakistan, a claim that Kabul denies.

Pakistan also blames India for backing militant groups in its Khyber Pakhtunkhwa and Balochistan provinces. India denies the allegations. 


Pakistan extends Hajj 2026 registration deadline to July 11 as 313,000 complete process 

Updated 11 min 13 sec ago
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Pakistan extends Hajj 2026 registration deadline to July 11 as 313,000 complete process 

  • The deadline for the registration process of Hajj 2026 was supposed to end on July 9
  • Registration is mandatory for all intending pilgrims and no fee is required at this stage

ISLAMABAD: Pakistan’s government has extended the deadline for Hajj 2026 registration by two days to July 11, the religion ministry said on Wednesday, sharing that 313,000 people have completed the registration process so far.

The ministry had announced the launch of next year’s Hajj process last month, which was due to remain open till July 9. Applicants will be able to choose between the government and private Hajj schemes once the deadline expires.

Intending pilgrims can register through 15 designated banks, and only those who complete the process will be eligible to perform Hajj next year. No fee is required at the registration stage.

“Deadline for Hajj 2026 registration has been extended by two days,” Pakistan’s Ministry of Religious Affairs (MoRA) said in a statement. 

“Hajj registration will continue until July 11 through designated banks and the ministry’s online portal.” 

The ministry said 313,000 individuals have so far completed the registration process for Hajj 2026. It added that the decision to extend the deadline was taken after considering requests from several intending pilgrims.

The ministry said expenses and other terms and conditions of Hajj 2026 will be issued separately as per the Hajj policy.

Registration is mandatory for pilgrims who were left out of the private scheme this year, as well as for Pakistanis residing abroad.

Pakistan had received a quota of 179,210 pilgrims from Saudi Arabia for Hajj 2025, evenly divided between the government and private Hajj operators.

However, a major portion of the private quota remained unutilized due to delays by companies in meeting payment and registration deadlines, while the government filled its full allocation of over 88,000 pilgrims.

Private operators blamed the situation on technical glitches such as payment issues and communication breakdowns.
 


Pakistan kicks off investor roadshow in China for inaugural panda bond

Updated 56 min 40 sec ago
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Pakistan kicks off investor roadshow in China for inaugural panda bond

  • Pre-marketing meetings in Beijing draw strong investor interest in debut Panda Bond
  • Finance Ministry says move will help diversify funding through China’s onshore market

KARACHI: Pakistan has launched a series of investor meetings in Beijing this week as it prepares to issue its first-ever panda bond, the finance ministry said on Wednesday, marking a significant step in the country’s strategy to diversify its funding sources through China’s onshore capital market.

Representatives from the Pakistani ministry of finance are holding the non-deal investor roadshow (NDR) in China from July 7 to 11, 2025. The delegation has engaged in technical discussions with potential investors, underwriters, prospective guarantors, the Chinese Rating Agency, and Chinese legal counsel as part of the pre-marketing process for the debut issuance.

The investor meetings focus on Pakistan’s macroeconomic outlook, ongoing debt management reforms and the proposed bond’s structure. The initiative reflects Pakistan’s push to broaden its investor base and strengthen its credibility in international capital markets.

A panda bond is a Renminbi-denominated bond issued by a foreign government, multilateral institution, or company in China’s onshore bond market, allowing overseas issuers to raise funds from Chinese investors while diversifying their investor base and gaining access to China’s deep capital pool.

“The visit reflects the Government’s commitment to proactive investor engagement and diversification of funding sources through access to China’s onshore capital market,” the finance ministry said in a statement.

According to the ministry, the inaugural panda bond is expected to be launched later this year after the completion of documentation and regulatory approvals, including credit guarantees from multilateral development partners.

Officials said the roadshow has drawn strong initial interest, signalling investor confidence in Pakistan’s reform trajectory. The ministry described the move as a milestone that would help Pakistan tap China’s deep and diversified onshore bond market while using local currency instruments backed by multilateral partners.

“The successful NDR so far reflects the Government’s commitment to innovative and forward-looking financial diplomacy — and sends a clear message: Pakistan is ready to enter new capital frontiers with confidence and credibility,” the statement added.


Pakistan launches new fisheries policy, eyeing $10 billion from sector

Updated 11 min 59 sec ago
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Pakistan launches new fisheries policy, eyeing $10 billion from sector

  • Despite Pakistan having over 1,050 kilometers of coastline, its untapped fisheries sector contributes only 0.5 percent to GDP
  • Ten-year policy focuses on climate resilience, gender inclusion, modern technologies, says maritime affairs ministry

KARACHI: Pakistan’s government launched its 10-year national fisheries and aquaculture policy on Wednesday, with a senior official saying that better management and value addition could help the fisheries sector generate up to $10 billion in value.

Pakistan has the potential to become a major player in the global fisheries markets with over 1,050 kilometers of coastline along the Arabian Sea and vast inland water resources. However, its fisheries sector remains largely undertapped due to poor regulations and issues such as overfishing, contributing only 0.5 percent to the country’s GDP. 

Pakistan’s Maritime Affairs Minister Junaid Anwar Chaudhry launched the 10-year National Fisheries and Aquaculture Policy 2025–2035 at a workshop in Islamabad.

“With better management and value addition, the [fisheries] sector could generate up to $10 billion in value,” Maritime Affairs Minister Secretary Zaffar Ali Shah said at the workshop.

Shah said despite Pakistan’s long coastline, the fisheries sector has failed to achieve its potential, saying that while it remains a vital source of livelihood, it faces serious issues like overfishing and poor regulation.

“He noted that the newly introduced national policy aims to resolve these challenges through coordinated planning,” the maritime affairs ministry said. 

Chaudhry said the policy focuses on cross-cutting priorities such as climate resilience, environmental protection, child safety, gender inclusion, labor rights and the adoption of modern technologies. 

The minister said that the policy’s success depended on sustained commitment, effective coordination and active engagement from all stakeholders.

“He said this policy represents a major milestone for not just the ministry but for all institutions, communities and stakeholders committed to the future of Pakistan’s blue economy,” the maritime affairs ministry said.

The workshop, organized by the maritime affairs ministry, also featured several panel discussions, including sessions on governance and incentives for the fisheries and aquaculture sectors, strategies for the development and management of aquaculture in Pakistan, and the implementation framework and cross-cutting themes of the national policy.

Pakistan reported an increase of over 20 percent in its seafood exports during the last fiscal year, reiterating its commitment to bolster its blue economy. The South Asian country hopes to achieve sustainable economic growth driven largely by exports. 


Oscar winner Sharmeen Obaid-Chinoy launches film project to spotlight Pakistan’s unsung changemakers

Updated 09 July 2025
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Oscar winner Sharmeen Obaid-Chinoy launches film project to spotlight Pakistan’s unsung changemakers

  • Free short film to be produced for one nonprofit, campaign aims to amplify overlooked voices
  • SOC Films project to coincide with Independence Day, covering issues from climate to refugees

ISLAMABAD: Two-time Academy Award-winning filmmaker Sharmeen Obaid-Chinoy on Wednesday launched a new initiative through her production house, SOC Films, to highlight the work done by grassroots projects and nonprofit organizations in Pakistan through storytelling.

The campaign, titled Frame It Forward, will select one organization to receive a professionally produced short film at no cost. The initiative aims to raise the visibility of local efforts across a wide range of issues, from education and gender equality to wildlife conservation, refugee assistance and community health.

“Too often, vital work being done in the heart of our communities goes unseen simply because it isn’t being told,” Obaid-Chinoy, the founder and CEO of SOC Films, said in a statement. “Frame It Forward is our commitment to community – using the power of film to help elevate voices that deserve to be heard.”

The short film will be publicly released on August 14, Pakistan’s Independence Day, and will be developed in close collaboration with the selected initiative. The deadline for applications is July 25. Nonprofits and grassroots groups across Pakistan are encouraged to apply through an open call.

SOC Films said the campaign was rooted in the belief that storytelling is a powerful tool for driving social change, fostering empathy and encouraging civic engagement.

“This storytelling campaign is dedicated to highlighting the impactful, yet often overlooked, work done by grassroots projects and nonprofit organizations in Pakistan,” the statement said.

Internationally, storytelling has emerged as a key tool for nonprofit visibility, especially in the Global South where many groups struggle to reach wider audiences or fund communications efforts.

Obaid-Chinoy’s films, which have tackled subjects such as acid violence and honor killings, have earned her critical acclaim and global awards. Her team has previously produced free documentaries for organizations including ChildLife Foundation, Indus Hospital and the Karachi Down Syndrome Program (KDSP).