Pakistan Loses $600 Million to Illegal Crypto Transactions Amid Dollar Drain

Pakistan's financial system is hemorrhaging dollars as illegal cryptocurrency activity siphons off an estimated $600 million. Exchange Companies Association of Pakistan Chairman Malik Bostan reveals that dollar sales to banks dropped from $4 billion to $3 billion year-over-year during the first ten months, with the missing funds largely flowing into digital assets.

The State Bank of Pakistan's directive to route dollar purchases through FCY accounts has failed to stem the tide. "These deposited dollars are then moved from bank accounts and used to buy digital assets through illegal means," Bostan stated, noting $400 million remained in FCY accounts while $600 million vanished without trace.

Border controls with Afghanistan haven't prevented the dollar drain, with exchange companies now issuing cheques instead of cash. The trend underscores how cryptocurrency adoption is growing in Pakistan's shadow economy, despite regulatory attempts to curb capital flight.