The State Bank of Pakistan (SBP) and Federal Investigation Agency (FIA) have jointly initiated action against illegal foreign exchange operators in Pakistan, the central bank stated on Tuesday.

"A high-level meeting was held between the SBP governor and DG FIA on November 8, 2022," stated the SBP.

SBP chief tells Dar rupee volatility has been controlled, exchange rate stable

“The meeting took stock of illicit foreign exchange activities and chalked out a comprehensive plan of action against illegal foreign exchange businesses being carried out in the country,” it said. “It was agreed during the meeting that concerted joint effort is required to apprehend and implicate the illegal foreign exchange operators and speculators across the country.”

Joint teams from SBP and FIA have been tasked to identify and take penal/legal action against the perpetrators so as to curb speculation and the grey market.

The teams, while remaining within the legal mandate allowed to them by the relevant laws, would crack down on all illegal foreign exchange operators and businesses across Pakistan.

Iqbal Day: SBP says will remain closed on Wednesday

Banks and Exchange Companies are authorised by the SBP to carry out foreign exchange business in Pakistan.

Involvement of any person or entity, other than banks and exchange companies, in a foreign exchange business is illegal under the Foreign Exchange Regulation Act, 1947. Illegal foreign exchange business also adversely affects the open market exchange rate and increases the gap between the inter-bank and open market exchange rate.

On Monday, SBP Governor Jameel Ahmad conveyed to Federal Minister of Finance and Revenue Senator Muhammad Ishaq Dar that the exchange rate has been stabilised after measures taken by authorities.

He stated this during his meeting with the federal minister at the Finance Division, said a statement released by the Ministry of Finance.

As per the statement, Dar and Governor SBP discussed measures taken for economic stability, recovery and development of the country. Moreover, coordination between the fiscal and monetary policy was also discussed in the meeting.

Ahmad said that as a result of continuous administrative efforts of the government and the policy measures of the SBP, the value of Pakistan’s rupee has been stabilised and exchange rate volatility has been curbed, read the statement.