The Federal Investigation Agency (FIA) has arrested two individuals in Karachi for allegedly operating an illegal currency exchange network during a major crackdown on unauthorised foreign exchange activities. Officials said the operation was conducted by the FIA’s State Bank Circle in the city’s Industrial Area.
According to FIA officials, authorities recovered nearly 2 billion Iranian rials during the raid. The seized foreign currency was reportedly worth around half a million Pakistani rupees in the open market.
The arrested suspects were identified as Ahmad Khan and Misbahul Haq. Investigators claimed the two men were caught red-handed while dealing in foreign currency without legal authorisation. During initial questioning, both suspects allegedly admitted to running an illegal forex business.
An FIA spokesperson stated that the suspects failed to provide valid documentation or lawful justification for the foreign currency transactions. Authorities believe the arrests have dealt a major blow to a wider illegal currency exchange network operating in Karachi.
The FIA further revealed that investigations are ongoing and additional arrests may take place as the agency expands its probe into hawala and hundi operations linked to illegal money transfers. Pakistan’s authorities have intensified efforts against unlicensed currency dealers and underground financial networks in recent months.
Officials say illegal foreign exchange businesses negatively affect the country’s financial system and contribute to money laundering risks. The FIA has repeatedly warned that strict action will continue against individuals involved in unauthorised currency trading and hawala operations across Pakistan.
