Ishaq Dar directs measures to stop cross-border dollar smuggling

Federal Minister for Finance and Revenue Ishaq Dar on Friday directed authorities to devise a robust and proactive road map to curb cross-border smuggling of foreign exchange and various items, as the government seeks to bring economic and financial stability in the country.

The development comes during an inter-ministerial meeting on economic situation of the country held at the Finance Division on Friday.

The meeting discussed and reviewed the economic situation and current mechanism of foreign currency; wheat and urea smuggling, said the Ministry of Finance in a statement.

Various measures were discussed in order to strengthen anti-smuggling regime, it said.

Pakistan's economy faces multiple challenges, including depleting foreign exchange reserves that declined by $784 million to $6.715 billion during last week, according to latest data. The current level of the reserves held by the State Bank of Pakistan (SBP) is the lowest since January 2019.

According to the SBP, this decline is on account of payment of $1,000 million against maturing Pakistan International Sukuk and some other external debt repayments. Some of the debt repayments were offset by inflows, mainly US$ 500 million received from Asian Infrastructure Investment Bank (AIIB).

Meanwhile, the finance minister highlighted the economic situation in the country and stressed the need for coordination among all the necessary platforms for this purpose.

The participants appreciated the finance minister for taking appropriate and active measures for tackling the current economic situation and ensured their support for ensuring smooth and sustainable economic growth, according to the statement.

Minister for Law and Justice Azam Nazeer Tarar, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Governor SBP, Secretary Finance, Secretary Interior, Chairman FBR, DG FIA, DG I&I Customs and senior officers from Finance Division and intelligence agencies also participated in the meeting.

Last week, Dar informed the attendees at a ceremony that steps are being taken to stop the smuggling of US dollar to a “neighbouring” country, which will also help the economy.