Pakistani Prime Minister Shehbaz Sharif
Islamabad: At a time when the international community has pledged to provide nearly USD 10 billion to help debt-ridden Pakistan rebuild from the catastrophic floods, a report prepared by the Shehbaz Sharif-led government has claimed that almost 60 to 70 million dollars was being smuggled from Islamabad to neighbouring Afghanistan on a monthly basis.
The government of Pakistan, which is currently facing a severe economic crisis, has prepared a report on smuggling of US dollar, which has revealed that almost 60 to 70 million dollars was being smuggled from Pakistan to Afghanistan on a monthly basis, ARY News reported.
As per the report, the country suffers revenue loss from smuggling on transit trade routes.
With the situation seemingly going out of control, the Pakistani government has now decided to raise this matter of dollar smuggling with the Taliban government in Afghanistan.
“The foreign currency was being used to open letters of credit (LCs) in the United Arab Emirates (UAE) and Turkey,” it stated.
Not just the US dollar, sources told ARY News that even small cars, tyres, mobile phones, oil and other valuables were also being smuggled to Afghanistan. “The smuggled items are reexported to Pakistan,” they added.
Pakistan has recorded a steep decline in auto sales ranging from 28.4 to 56.5 per cent during the first half of 2022-23, local media reported.
Owing to a significant decline in the number of buyers in the market and ‘cash flow constraints,’ manufacturers are forced to shut down production.
Pakistan receives foreign aid
On Monday, Pakistan received more than USD 9 billion in pledges to help it recover from last year’s devastating floods with the Islamic Development Bank, World Bank and Saudi Arabia emerging as the biggest donors.
Not just that, the United Arab Emirates (UAE) on Thursday also agreed to extend an existing loan of USD 2 billion and provide an additional loan of USD 1 billion to help the cash-strapped country tackle its economic woes, including the fast depleting foreign exchange reserves.
(With inputs from agencies)
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