Freshly printed currency notes, once a simple luxury for Pakistanis during Eid and other celebrations, have become virtually inaccessible through official channels—yet they are thriving in the black market at steep premiums.
An investigation by ProPakistani has uncovered what appears to be a systematic diversion of new notes from the State Bank of Pakistan (SBP) and its subsidiary, SBP-BSC, into private hands. The findings include leaked memos, internal emails, and cash slips suggesting senior SBP staff are profiting from a racket that has eroded public trust in the banking regulator.
From Public Service to Black Market Commodity
Until a few years ago, citizens could reserve fresh currency notes through a centralized SMS system, collecting them from designated bank branches ahead of Eid. That system has quietly disappeared. Today, commercial banks routinely tell customers they have no stock, while currency dealers in Lahore, Karachi, and Islamabad openly sell the same notes at inflated rates.
A bundle of Rs. 10 notes worth Rs. 10,000, for example, now costs as much as Rs. 16,000 on the street—a 60% markup fueled by artificial scarcity.
Paper Trail Points to Insider Collusion
Documents obtained by ProPakistani detail how senior SBP officials allegedly bypass official channels to issue bulk quantities of new notes to select brokers.
One such memo, marked “Fresh Cash for Muzaffarabad,” lists serial numbers for hundreds of thousands of rupees’ worth of Rs. 10 and Rs. 20 notes. Sources claim these notes never reached bank counters but were instead delivered to a Lahore-based dealer known as M. Usman, who operates a cash and prize bond shop.
Handwritten annotations on internal slips further confirm specific packets being allocated directly to individuals outside the banking network.
A Well-Oiled Corruption Scheme
According to insiders, each diverted consignment generates at least Rs. 2 million in illicit profit. Brokers buy the notes at face value and sell them in the black market, with the kickbacks allegedly split among multiple levels of SBP staff.
This structured network has turned what was once a minor public amenity into a multi-million-rupee racket, damaging the credibility of Pakistan’s central bank.
Whistleblower Reports Go Nowhere
A formal complaint, reportedly supported by detailed evidence, has already been sent to the Governor of the State Bank. Yet no significant investigation has followed, fueling speculation that the corruption may be more deeply entrenched than initially thought.
The SBP has so far ignored multiple requests for comment.
A Crisis of Trust
The shortage of fresh notes isn’t just an inconvenience—it’s a sign of weakening accountability in Pakistan’s banking system. Ordinary citizens now pay heavily to maintain a simple cultural tradition, while those entrusted with safeguarding the nation’s currency appear to be cashing in.
Unless Pakistan’s regulators confront this scandal head-on, the black-market trade in fresh currency notes is likely to deepen, further undermining confidence in the central bank and the broader financial system.
