Karachi: Rupee ended with loss for sixth successive session against dollar, falling 0.15 percent in inter-bank market transaction. As per State Bank of Pakistan (SBP), rupee closed at 226.15 after fall of 0.33 paisa against greenback. Rupee has depreciated over 22 percent against dollar during ongoing calendar year. On Monday rupee value settled at 225.82 after decline of 0.18 paisa or 0.08 percent.

Market experts and currency dealers expressed concern over rise in smuggling of dollars to neighbouring countries, which is also driving informal/grey market.

Malik Muhammad Bostan President of Forex Association of Pakistan claimed that country was hemorrhaging dollars owing to smuggling and its trade with Afghanistan.

“We are losing close to $ 2 billion to Afghanistan on monthly basis. Government must ban trading in dollars with neighbour. It should be done in local currency or barter trade,” said Bostan. “Pakistan imports coal from Afghanistan, but payments are being made in dollars,” he claimed.

Bostan said Pakistan’s domestic market is full of buyers with not nearly enough foreign currency to meet demand. “Very small number of people are currently selling their dollars in open market. These are people unaware of black market. Otherwise they, too, would go that way, I feel.”

Published in The Daily National Courier, December, 28 2022

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