Currency crisis of Pakistan is tightening its grip, with a severe dollar shortage leaving businesses and families struggling. On August 7, 2025, market sources reported that the government’s push to lower the dollar to Rs250 has backfired, driving foreign currency underground and fueling a black market.
SBP on Currency Crisis of Pakistan
The State Bank of Pakistan’s crackdown on dollar smuggling, launched on July 23, led to a slight rupee gain, with the dollar trading at Rs285.15 in the open market. Yet, dealers warn that artificial price controls are pushing dollars to illegal channels, where rates soar above Rs290. A senior banker noted, “The economy can’t support a stronger rupee right now,” highlighting Pakistan’s reliance on global dollar trends.
Exchange Companies Association of Pakistan’s Stance
The Exchange Companies Association of Pakistan denies a shortage, but citizens face real hurdles. Students and patients, like Abid Ali, who needs $19,000 for his daughter’s US tuition, are turned away by banks. The government’s Rs86 billion incentive for banks to boost remittances has drawn criticism for encouraging profiteering.
As currency crisis of Pakistan grapples, the nation holds its breath, hoping for relief to restore economic stability.
Published in SouthAsianDesk, August 7th, 2025
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