The circulation of sophisticated counterfeit currency notes has raised serious concerns in Pakistan, with a Senate committee warning that fake Rs5,000, Rs1,000 and Rs500 notes are increasingly entering the market, allegedly even through commercial bank ATMs.
The issue was discussed during a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla.
He expressed concern over reports that ATMs were dispensing counterfeit Rs5,000 and Rs1,000 notes, leaving customers with little recourse.
Mandviwalla said some counterfeit notes were so sophisticated that even experts could struggle to distinguish them from genuine currency.
He recalled that the committee had handed three Rs5,000 notes to State Bank of Pakistan (SBP) Deputy Governor Dr Inayat Hussain for verification last year. According to the senator, one was counterfeit, but the official was unable to identify it.
He said ordinary citizens, particularly daily-wage workers, could suffer significant losses after unknowingly receiving fake notes. He also alleged that banks often refused to replace counterfeit notes dispensed by ATMs.
The SBP deputy governor told the committee that work had begun on a completely redesigned currency series featuring enhanced security measures. A government committee headed by the finance minister is overseeing the process.
Officials said the new notes are intended to counter advanced counterfeiting and remain durable in circulation.
The redesign and rollout process could take around a year, while lawmakers called for greater transparency and faster action.
