Daijiworld Media Network - New Delhi
New Delhi/Kathmandu, Aug 13: Nepal is rapidly becoming a strategic transit corridor for Pakistan-based terror outfits and fake currency networks, warned both Indian intelligence agencies and a top Nepali official.
At a recent seminar in Kathmandu on regional peace and security in South Asia, Sunil Bahadur Thapa, Principal Political Advisor to Nepal’s President, issued a stark warning: UN-designated terror groups like Lashkar-e-Taiba and Jaish-e-Mohammed pose a serious threat to India and could potentially use Nepal as a launchpad or transit route for their operations.
This is far from a new development. Indian agencies have long tracked Pakistan’s Inter-Services Intelligence (ISI) exploiting Nepal’s open border and loose surveillance to smuggle operatives, weapons, and counterfeit currency into India.
?? ISI’s New Focus: Nepal
With increased Indian surveillance and infiltration curbs along the Line of Control (LoC) in Jammu and Kashmir, the ISI appears to be shifting gears — targeting softer fronts like Nepal and Bangladesh to execute its long-standing proxy war against India.
Recent Intelligence Bureau assessments signal a marked rise in ISI-backed operations in Nepal. Reports confirm a surge in fake Indian currency now entering through Nepal instead of traditional Bangladesh routes.
“These fake notes are then funneled into states like Uttar Pradesh, Bihar, and West Bengal, and used to fund sleeper cells and terror infrastructure,” a senior official said.
?? Fake Currency Surge Fuels Terror Funding
The National Investigation Agency (NIA), which has flagged this escalating threat, points to Operation Sindoor — India’s counter-terror operation post the Pahalgam attack — as a trigger for ISI’s fundraising frenzy. With their terror networks disrupted, Pakistan-based groups are now doubling down on fake currency circulation to rebuild.
NIA data shows the worrying trend:
• 2023: 2,25,769 counterfeit notes detected
• 2024: 2,22,639 fake notes caught
• 2025 (projected): Set to exceed previous years
Agencies believe a coordinated network involving Pakistan, Bangladesh, and Nepal is pushing fake notes harder than ever in 2025.
?? India’s Response
In light of the evolving threat, the Indian government has reinforced the Terror Funding and Fake Currency Cell (TFFC) within the NIA. This unit is tasked exclusively with dismantling cross-border financial terror networks.
Meanwhile, Indian armed forces remain on high alert across all fronts — not just at the LoC but also monitoring new infiltration routes along the India-Nepal border.
Officials stress that while India's defence forces are well-prepared, the emerging multi-front strategy adopted by Pakistan-backed networks will demand continuous vigilance and enhanced cooperation with Nepal.