Citizens across Pakistan are facing growing frustration as fresh currency notes, once easily available during festive seasons, have virtually disappeared from public circulation. Despite repeated assurances from commercial banks and the State Bank of Pakistan (SBP), evidence has surfaced suggesting that new notes are being diverted into the black market through an organized network operating within SBP and its subsidiary, SBP-BSC.
This revelation points to an alleged multi-million-rupee corruption scandal that undermines both the credibility of the banking regulator and the trust of ordinary citizens who depend on these services for cultural and social traditions, particularly during Eid festivities.
For years, SBP operated a CNIC-based quota system through which citizens could book fresh notes via SMS and collect them from designated branches. That system has now been discontinued without clear explanation. Today, banks regularly claim that they do not have fresh notes in stock, while black market brokers in Karachi, Lahore, Islamabad, and other major cities openly sell them at exorbitant premiums.
The scale of profiteering is significant. A single bundle of Rs. 10 notes worth Rs. 10,000 is being sold for as high as Rs. 16,000 in open markets, reflecting a staggering 60 percent markup. This practice has created artificial scarcity, pushing ordinary families to pay well above official value, all while those involved pocket massive illicit gains.
Internal documents reviewed by investigative reporters point to collusion at the highest levels within SBP. Leaked memos and handwritten cash slips suggest that senior officials, including an Executive Director, approved the issuance of bulk fresh notes under false pretenses. For example, bundles earmarked as “fresh cash for Muzaffarabad” were instead channeled directly to private brokers. One such broker, identified as M. Usman, operates a prize bond and cash business in Lahore and has allegedly been a frequent recipient of these diverted funds.
The documents even include serial numbers of the issued notes, serving as clear evidence that these bundles never reached public counters. According to insiders, every such transaction generates illicit profits of at least Rs. 2 million, which are then divided among various levels of staff in a structured payoff system.
The allegations have not gone unnoticed. An anonymous complaint, reportedly backed by documentary evidence, was submitted directly to the Governor of SBP. However, no visible action or inquiry has been initiated so far. This silence has raised serious questions about the effectiveness of the regulator’s internal accountability mechanisms and whether there is institutional will to confront corruption that appears deeply entrenched.
For citizens, the impact is direct and disheartening. Fresh notes have long been associated with Eid traditions, gifts, and family gatherings. Their disappearance from official circulation has eroded trust in what was once a simple, accessible service. Instead of providing convenience to the public, the system now appears captured by insiders who have monetized scarcity for personal enrichment.
The broader implications are equally troubling. A central bank must command trust and integrity to effectively manage currency issuance and monetary policy. The perception that officials may be exploiting their positions for financial gain risks long-term damage to SBP’s reputation and to public confidence in Pakistan’s banking ecosystem.
When approached for comment, the State Bank of Pakistan did not issue a response. The absence of an official statement leaves unanswered questions about accountability and future reforms to prevent such scandals from recurring.
Unless decisive steps are taken, the issue of fresh notes may become symbolic of a wider governance challenge facing Pakistan’s financial institutions, where public services risk being undermined by entrenched interests and unchecked corruption.
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