The surge in the US dollar rate appears to have intensified following a regime change in Pakistan. In just three months of 2022, Allied Bank’s foreign exchange income increased by 79.55% compared to the entire year of 2021, while HBL saw a 94.55% rise during the same period. Despite the responsibilities of the SBP and Pakistan’s Finance Ministry to regulate these banks, they seem to have fallen short in ensuring proper oversight.

Former Pakistani Finance Minister Miftah Ismail had attributed the rise in the dollar rate to “market fundamentals” and “economic fundamentals.” However, the new Finance Minister, Ishaq Dar, has pledged to reduce the US dollar rate to below Rs200, aiming for a rate closer to Rs190 or Rs195. Despite this promise, the ground reality continues to differ from these goals.

The State Bank of Pakistan (SBP) has identified eight Pakistani banks for their involvement in a significant rise in the US dollar rate in Pakistan. These banks, including Habib Bank Limited, Allied Bank Limited, Bank Alfalah Limited, United Bank Limited, MCB Bank Limited, Bank Al Habib Limited, Meezan Bank Limited, National Bank of Pakistan, Askari Bank Limited, and Habib Metropolitan Bank, collectively earned a profit of Rs27.8 billion in foreign exchange during the first quarter of the fiscal year 2022-23. Notably, their profits in this quarter exceeded their full-year earnings in 2021-22, raising concerns about their activities.

Further revelations may emerge as the investigation into this matter unfolds.