With the gap between interbank and open market rates of the dollar decreasing but still persisting, the government has geared up for a cracdown against people hoarding and smuggling foreign currencies in the country.

Reports claimed that the government has prepared lists of officials and abettors involved in smuggling operations and action will be taken soon.

The reports added that the government intends to act against ‘mafias’ that are manipulating the currency market in an organised manner.

The government is also upgrading the system used to monitor foreign currency in the country as well.

The rupee has strengthened in the open market, gaining Rs7 against the dollar on Wednesday. However, the gap between the open market rate and interbank rate has not been completely bridged.

The development comes a few days after the dollar’s value crossed the Rs300 mark for the first time in the country’s history.

The matter also came up in Army Chief General Asim Munir’s meeting with traders in Karachi, where businessmen complained that the gap between the dollar’s interbank and open market rate and its spiralling value were creating uncertainty for businesses.

The dollar’s value has far reaching impacts on Pakistan’s economy, in large part due to the fact that it determines the price of imported fuel which in turn is a key factor in inflation.