Last Updated on September 7, 2026 by YeJahan
- Fake currency mafia tightens its grip across Pakistan.
- Counterfeiters outsmart State Bank with undetectable fake notes.
- Senate Finance Committee Chairman exposes shocking regulatory failures.
- Scam alert as commercial bank ATMs spit out counterfeit cash.
- Phantom companies infiltrate stock market to gamble with public savings.
YEJAHAN REPORT
ISLAMABAD (Aug 25, 2026): During a high-level briefing here on Monday startling revelations were made regarding the preparation and circulation of fake currency notes, the presence of shell companies in the stock market, and the regulator’s inability to identify counterfeit money. It was disclosed that even commercial bank ATMs are reportedly dispensing counterfeit notes.
Deputy Governor of the State Bank of Pakistan (SBP), Dr Inayat Hussain, faced tough questioning during a Senate Standing Committee on Finance meeting held under the chairmanship of Senator Saleem Mandviwalla, as members raised alarms over the influx of fake currency in local markets.
Committee Chairman Saleem Mandviwalla noted that while counterfeit Rs5,000 notes were previously rare, complaints regarding high-denomination fake currency are now surging. He revealed that two years ago, he handed three Rs5,000 notes to the Deputy Governor for verification. One of those notes was counterfeit, yet central bank officials failed to detect it at the time.
Addressing the central bank’s upcoming policy shifts, Dr Inayat Hussain stated that due to high production costs, there is a proposal to discontinue the Rs10 note, making the Rs20 note the country’s lowest paper denomination.
He said the SBP had previously made two attempts to phase out the Rs10 note. The denomination is expected to be discontinued once the new currency notes are introduced.
However, Senator Mandviwalla expressed strong reservations over the central bank’s procurement process, stating, “The firm you have hired for designing will also be the one printing the notes. It happens nowhere else in the world that a single firm handles the entire process. The State Bank has been unable to issue new currency notes for two years. At this pace, our parliamentary term will end before the notes are even printed.”
In response, the Deputy Governor explained that the matter has been referred to the federal cabinet, which formed a dedicated committee to oversee design modifications. “We initiated an open bidding process for the new currency designs. The current Rs. 5,000 note was introduced 20 years ago, and we are now designing a new series intended for the next two decades,” Dr. Hussain clarified.
The scrutiny extended beyond currency notes, as Senator Talha Mahmood raised concerns over fraudulent listings on the Pakistan Stock Exchange (PSX).
“I have learned that fake companies are getting registered in the stock market. These entities could offload their shares and vanish, causing massive financial losses to the public. There are also reports that these companies are using the names of prominent businessmen to gain credibility,” Mahmood warned.
Committee member Anusha Rahman categorized the stock market irregularities as a clear case of white-collar crime demanding a Federal Investigation Agency (FIA) probe. She questioned the central bank’s lack of technological adoption, remarking, “Why does the State Bank not utilize Artificial Intelligence (AI) to counter these issues? The traditional manner in which the authorities are operating suggests that updating our financial safeguards will take a considerable amount of time.”
