Leaked Memos Expose SBP Officials in Multi-Million Rupee Cash Scandal
If you’ve ever tried to get fresh banknotes from a bank in Pakistan, you’ve probably faced the same frustration: the teller says they don’t have any, regardless of the time of year. While commercial banks and even the State Bank of Pakistan (SBP) itself insist there’s no shortage, a recent investigation reveals a completely different story. It seems an organized network of corruption within the SBP and its subsidiary, SBP-BSC, is funneling new currency directly into a thriving black market.
This problem wasn’t always so widespread. Not long ago, the SBP had an SMS-based system where anyone could book a specific amount of new notes using their CNIC and pick them up from a bank branch. That helpful service has now been quietly shut down. The result? A public that has no way to get the cash they need for special occasions, while a parallel market openly sells it at inflated prices.
In major cities like Karachi, Lahore, and Islamabad, you can find brokers selling bundles of new notes for a significant markup. For example, a bundle of Rs. 10 notes, which has a face value of Rs. 10,000, is reportedly being sold for as much as Rs. 16,000. This artificial shortage not only hurts regular people but also creates a massive profit center for those involved.
Internal documents, including private emails and cash disbursement slips, have shed light on how this operation works. The evidence reviewed points to high-level officials, including an Executive Director at the SBP, who are allegedly facilitating the issuance of large amounts of fresh notes directly to specific brokers. One of these individuals, a prize bond and cash dealer in Lahore, is a frequent recipient of these bulk transfers.
The paperwork shows large quantities of notes, specifically Rs. 10 and Rs. 20 bills, being released under vague pretexts, such as “fresh cash for Muzaffarabad.” However, handwritten notes on the slips, which even include the serial numbers of the note bundles, confirm that this money never reaches its supposed destination. Instead, it goes straight to private individuals.
Sources inside the banking sector estimate that a single transaction can generate over Rs. 2 million in illicit income for the officials involved. The process is simple: the notes are issued at face value to the brokers, who then resell them at a huge profit in the open market. This profit is then allegedly split among various staff members, creating a deeply entrenched system of kickbacks.
Despite an anonymous complaint with supporting documents being sent to the Governor of the SBP, there has been no visible effort to launch an official investigation or put an end to this practice. This lack of action raises serious questions about the central bank’s commitment to rooting out corruption within its own ranks.
For the average Pakistani citizen, this isn’t just a matter of convenience; it’s a matter of trust. The tradition of using fresh notes for Eid and other family events is a small but important part of our culture. When a public service meant to support that tradition is corrupted for personal gain, it erodes confidence in our most important financial institutions. The State Bank needs to explain how notes intended for the public keep ending up in the hands of black market dealers. If they don’t take strong, immediate action, the credibility of Pakistan’s banking system will continue to suffer.
When contacted for a statement on the matter, the State Bank of Pakistan did not respond to the request.
