Currency traders seek to restore Dubai links amid ongoing conflict

Efforts are underway among currency traders in Pakistan to reestablish trade connections with Dubai, following a significant disruption caused by recent hostilities in the region. The trade relationship was affected after the US-Israel attack on Iran, which resulted in Dubai being described as a war zone by traders.

Traders have indicated that there are plans for two flights to depart from Karachi and Lahore to Dubai tonight. However, they were unable to specify the identities of the individuals traveling or the reasons for their entry into Dubai while the conflict persists.

Dubai is recognized as a major global financial hub, and numerous Pakistani companies operate there, taking advantage of tax exemptions and other benefits not available domestically. Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP), stated, “We have collected foreign currencies and a person is expected to fly to Dubai to buy dollars against these currencies.”

He explained that foreign currencies such as the Saudi Riyal, UAE Dirham, and other non-US dollar currencies are collected and sent to Dubai, where they are exchanged for US dollars. This process is a common practice among Pakistani currency traders seeking to acquire dollars for local needs.

A flight from Lahore is expected to depart at 3:30am for Dubai. However, representatives were unable to provide further details about the passengers or the specific nature of their business in Dubai during the ongoing conflict.

The situation remains fluid as traders continue their attempts to restore normal operations with Dubai, despite the uncertainties posed by the regional conflict.