Pakistan itself has two advantages: It makes
money by producing and selling counterfeit currency,
and in the process, it harms the Indian economy
as part of its mad terror and proxy war against
It may be recalled that a few years back, a First
Secretary of the Pakistani Embassy in Kathmandu
was sent back to country because of his clear-cut
involvement in sending the counterfeit currency
India and Nepal share a long porous border and
no visa is required. The movement on their borders
is not only unrestricted but very heavy too because
of the traditionally good relations. ISI takes
advantage of this, and has recruited both Indian
and Nepalese criminals as couriers who smuggle
IFCN to India. The problem is multiplied as admittedly
there is rampant corruption on both the sides
of the border.
According to Indian intelligence estimates, billions
of dollars worth of counterfeit Indian currency,
printed in the official Pakistani presses, is
in circulation in India. One strong piece of evidence
is from international reports which say that Pakistan
buys far more currency paper and special inks
than it needs annually to print its own currency.
According to intelligence reports, initially
the fake Indian currency was printed in only one
or two Pakistan government presses. However, as
ISI has been able to successfully enlarge its
network in Nepal, Bangladesh, Sri Lanka, Dubai
(UAE) and even in India itself with the connivance
of gangsters like Dawood Ibrahim, the fake Indian
currency is now being printed at several government-controlled
presses in Karachi, Multan, Quetta, Lahore and
There are unconfirmed allegations that ISI has
also been able to print some fake Indian currency
in Bangladesh under its direct supervision.
The Pakistan government imports the special paper
and ink from UK, Sweden and Switzerland. As the
material is much more than its own legitimate
requirement, the excess bulk is diverted to ISI,
which is regarded more as an international terror
and sabotage outfit now than a normal security
agency which should be concerned with safeguarding
its own country.
ISIís penetration in India can be gauged from
the fact that the its Pakistan-made fake Indian
currency was found from the chests of a nationalized
bank in Indiaís Uttar Pradesh state.
It may be noted that both the ISI and the Pakistan
Pakistan International Airlines (PIA) are operated
by the Pakistani Defence Ministry. PIA also has
some hotels as part of its international chain.
ISI mostly uses PIA for transporting the IFCN
to various countries. As ISI is part of Pakistanís
persistent and main ruling party, the Pakistani
Army, it occasionally uses the privileged diplomatic
channels like the diplomatic personnel and bags
also to spread its nefarious activities.
The ISI has raised influential persons in these
countries and in turn these high-ranking persons
have recruited middle level couriers. Each middle
level courier has few low level carriers who take
the IFCN to India. In India these low level carriers
give IFCN to their contacts in almost all the
big cities of India. These middle level couriers
and low level carriers meet their contacts as
per their date, place and time. This is the reason
that when these low level couriers/carriers are
caught the Indian security agencies fail to lay
hands on big fish.
Modus Operandi of ISI
The modus operandi of ISI is simple. It prints
notes of Rs 1000 and Rs 500 denominations. As
ISI uses the Pakistan governmentís state apparatus,
the quality of the counterfeit Indian currency
is good and it is difficult for an average person
to identify the Made-in-Pakistan-and- Counterfeit
The main agents, who buy the counterfeits at
50 per cent of the face value from ISI-Dawood
Ibrahim network, distribute the currency in small
bundles through their layered networks. Many Indians
returning home on Transfer of Residence (TR) from
Dubai have been caught with this counterfeit currency
hidden in televisions and electronics goods.
The same way, a large number of people coming
from Nepal and Bangladesh are lured to bring IFCN
to India. If a carrier has a large sum, then a
trusted ISI escorts him clandestinely. The carrier
is not given any address or contact number of
the Indian contact. On the other hand, its India-based
agent would have the mobile number and address
of the carrier, and if the carrier is able to
slip in successfully, he is contacted and the
counterfeit collected from him for further distribution.
If the India-based agent has an iota of suspicion
that the courier is likely to be caught, then
the operation is just dropped so that no contacts
can be established in the chain.
In Bangladesh, it is reported that Malda and
Murshidabad have become the main transit points
for circulating IFCN to various cities in India.
There is a long porous border with heavy legal
and illegal traffic between both the countries.
The inhabitants on both sides of the border are
poor and law enforcing agencies are dishonest;
hence the illegal trafficking of IFCN faces virtually
Adverse Impact of IFCN
on Indian Economy
The smuggling of a large amount of IFCN is simply
economic terrorism. The funds generated so are
additionally used to finance the terrorist activities
in India. According to an unconfirmed report,
ISI has an annual budget of Rs 1800 crore per
year on organizing terrorist activities in India.
It generates most of this requirement itself by
printing and circulating fake currency, and smuggling
of drugs to and through India for European and
It may be recalled, and significantly, that
the biggest drug haul in Dubai in the early 1980s
was caught from the rice consignment sent by the
Pakistan government-owned Rice Export Council
of Pakistan (RECP). That clearly indicates that
ISI has no restrictions on using whatever official
and unofficial channel that it wants to use.
Measures Adopted by India
The Indian Home Minister recently discussed the
issue of smuggling of IFCN through Nepal to India
with the Nepalese Prime Minister. The Home Secretaries
of both India and Nepal have also agreed to chalk
out a plan to curb the smuggling of IFCN from
Nepal to India.
A Central Bureau of Investigation (CBI) spokesperson
told in a press conference sometime back that
a special team has been constituted wi th of f
i c e r s f rom CBI and Directorate of Revenue
Intelligence (DRI) etc. to ascertain up to what
level security templates have been compromised.
The Cabinet Secretary has also chaired a high
level meeting of various security agencies to
adopt a comprehensive policy to stop the smuggling
of IFCN in India at the earliest. Besides taking
action within the country, it has also been decided
to get in touch with European countries from where
Pakistan is importing special paper and ink much
more than its legitimate requirement.
India is also considering major changes in its
currency notes to make them more difficult to
copy and also to spread an awareness campaign
in the public to help identify the Madein- Pakistan
counterfeit Indian notes.
A proposal to award exemplary punishment to currency
smugglers is also being considered.