Actions against wrongdoers

The caretaker government’s crackdown across Pakistan against illegal foreign currency transactions, electricity, and gas pilferage and hoarding of sugar — all at the same time — has delivered some initial results. The rupee has regained some of its lost value against the US dollar, sugar prices that skyrocketed in recent weeks have started to fall, and the speed with which power from utilities was being stolen has decelerated. The action against the wrongdoers can be expected to continue for one simple reason: the International Monetary Fund (IMF) is in no mood to allow space for the caretakers to continue to accommodate the status quo in economic matters — and the crackdown against the wrongdoers has been initiated with the full backing of the army’s top leadership. The State Bank of Pakistan (SBP) has unveiled a comprehensive strategy to stop the flight of US dollars from the country and has asked low-grade (B-category) foreign exchange companies to upgrade them within three months or risk losing their licenses.