In a decisive move to curb illegal currency trading and restore stability to the rupee, Pakistan’s military has once again stepped into the financial arena. A senior intelligence official recently met with top currency exchange companies, triggering a new wave of enforcement against black market dollar dealers.

The intervention follows mounting pressure on the rupee, which has faced volatility due to rampant dollar hoarding, cross-border smuggling, and banking hurdles. As informal markets offered quicker or better rates, many turned away from legal channels, pushing the rupee down further.

According to Malik Muhammad Bostan, Chairman of the Exchange Companies Association of Pakistan, security forces, including the FIA, have launched a swift crackdown. Many unauthorized dealers have reportedly gone underground.

“After the meeting, enforcement agencies acted fast. The dollar rate dropped by Rs. 1 in the open market,” Bostan shared, attributing the drop to improved dollar availability and fear among illegal traders.

This marks the second army-backed intervention of its kind, following a similar move in 2023 that successfully stabilized the rupee. With this latest campaign, the state is once again signaling zero tolerance for market manipulation.

Whether this effort can yield long-term results depends on the depth of enforcement and the government’s ability to maintain formal financial flows amidst rising demand.