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Notice (8): Undefined variable: urlPrefix [APP/Template/Layout/printlayout.ctp, line 8]latest-news-updates/amid-dollar-crunch-pakistani-importers-head-towards-grey-market-for-transaction.html"/> LATEST NEWS UPDATES | Amid dollar crunch, Pakistani importers head towards grey market for transaction | Im4change.org
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Amid dollar crunch, Pakistani importers head towards grey market for transaction

-Livemint.com

After extreme rain and severe flooding, Pakistan is dealing with acute food shortage. Moreover, dollar crunch has kept Pakistani food importers at mercy of grey market

Extreme floods might not be a problem for Pakistanis anymore, but acute food shortage and drying forex reserve have made Pakistani food importers vulnerable to the grey market for payments.

Under the grey market, the commodities are traded through markets that are unauthorised by the manufacturers. Many Pakistani importers of food from Afghanistan and Iran are now relying on the grey market for their payments as they are not allowed to buy dollars from banks or exchange companies.

Due to heavy rainfall and extreme floods, many of its crops were destroyed. This has led to the nation facing an acute shortage of tomatoes, onions, potatoes, and other food items.

To deal with the growing food shortage in the country, the Pakistan government has allowed the import of these foodstuffs from neighbouring countries. However, the government has not made any arrangement for the provision of dollars to make payments against these imports.

Currency dealers and importers told PTI that they were asked to opt for a barter system with their Afghan and Iranian counterparts by exporting food items available in Pakistan. A barter transaction is the exchange of goods or services, in exchange for other goods or services.

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