The smuggling of the US dollar from Pakistan to Afghanistan has gained pace during the month as War raged Afghanistan’s Banking system nears to collapse amid drying up reserves. As per the news sources, Dollar Cash smuggling is taking place through transport companies – clients, truck drivers and sometimes children via Torkham and Chaman Border.

This is putting pressure on Pakistan’s FX Market as US$ rate against PKR has risen significantly both in Inter-Bank and Open Markets.

As per the sources, roughly $2 million dollar is being smuggled on daily basis as Afghan Nationals living in Pakistan purchase 2,000- 3,000 dollars on individual basis and carry them to Afghanistan in their visit or through their contacts, where it is sold at massive profit.

As per Pakistan’s law, Individuals are allowed to carry up to $10,000 dollar in a foreign visit.

The sources have also confirmed that the truck drivers are also involved in smuggling dollars into Afghanistan in exchange for money from Afghans on the Pakistani side.

Malik Bustan, chairman of the Forex Association of Pakistan (FAP), told a News agency that the dollar outflow is steadily continuing and is putting pressure on the Pakistani currency.

This is a complete failure of Pakistan Customs and Border security forces which are unable to curtail the outflow.

Rupee has been under considerable pressure as Country witnesses huge Current Account deficit. This is further exacerbated by Smuggling of Foreign Currency, putting extreme pressure on Rupee.

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