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Thu, Jun 07, 2001 - Page 19 News List

Peshawar: Still the dusty crossroads of Asia

On the frontier with Afghanistan, Pakistani government rules and taxes don't apply and millions of dollars change hands freely every day. Officials say billions pass through this rough and ready town annually

AP , PESHAWAR, PAKISTAN

For example, a money dealer handling only Afghanis, the currency of Afghanistan, does not need a license. As a result, most currency dealers hide their real business and say they trade only in Afghanis.

Pakistan relaxed rules for trading in Afghanis during the 1980s as a way to help Afghan refugees fleeing Soviet occupation forces. The easygoing atmosphere in Peshawar meshed well with Afghanistan's burgeoning opium trade.

Hundreds of unemployed Afghans became currency dealers and dominated the market.

``With their drug money, strong tribal connections and a large refugee population living abroad, they have outclassed Pakistani dealers,'' said Tariq, the dealer.

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