Fake Rs5,000 banknotes flood Pakistani markets

WEB DESK: The Senate Standing Committee on Finance convened on Tuesday, expressing deep apprehension regarding the widespread proliferation of counterfeit Rs5,000 notes in Pakistan.

Senator Saleem Mandviwalla, serving as the committee chairman, urgently called upon the State Bank of Pakistan to take prompt and decisive actions to address the alarming surge in fake currency circulation—an issue persisting for numerous years.

According to details, even officials of the State Bank of Pakistan (SBP) failed to recognise the fake Rs5,000 banknotes.

Notably, discussions on this matter took place in October 2023, yet subsequent reports indicate no tangible progress on implemented countermeasures.

During the session, Senator Mandviwalla directed attention towards financial institutions, suggesting that the entry of fake Rs5,000 bank notes into circulation is facilitated through these banks.

According to reports, these fake Rs5,000 banknotes closely resemble the authentic Pakistani Rs5,000 banknote, posing a significant challenge for individuals to distinguish between the genuine Rs5,000 banknote and its counterfeit counterpart.

In response, the Deputy Governor of the State Bank of Pakistan assured the committee of imminent measures designed to control this predicament, highlighting the implementation of stringent regulations.

Proposing a practical solution, the committee chairman recommended that the State Bank facilitate the exchange of counterfeit currency for genuine notes.

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However, the Deputy Governor expressed reservations about the potential long queues that might result from such an exchange, prompting a careful consideration of the practicality of the proposed solution.

Senator Mandviwalla raised pertinent questions about the extent of the State Bank’s authority, emphasizing the challenges faced by the common man in distinguishing between authentic and counterfeit currency notes.

Urgency echoed through the proceedings as the committee chairman underscored the need for relief measures in response to the pressing situation.

In a unanimous decision, the committee called for the development of a comprehensive policy aimed at combatting the escalating use of counterfeit currency notes, particularly within the framework of the banking system.

The urgency of the matter was underscored as the committee collectively advocated for swift and effective measures to safeguard the financial integrity of the nation.