Is Pakistan’s ISI Exploiting Nepal to Invade India with Terror and Counterfeit Currency?

New Delhi, Aug 13 (NationPress) At a recent seminar focused on the challenges to regional peace and security in South Asia held in Kathmandu, Sunil Bahadur Thapa, the Principal Political Advisor to the President of Nepal, highlighted the looming threat posed by Pakistan-based UN-designated terrorist organizations like Lashkar-e-Taiba and Jaish-e-Mohammed to India.

He further indicated that these groups could exploit Nepal as a crucial transit point for their malicious agendas.

The use of Nepal as a conduit for Pakistan’s ISI is not a recent strategy; numerous incidents illustrate that Nepal has long been a favored hub for ISI operations.

In recent weeks, intelligence agencies have raised alarms about the increasing activities of the ISI and its affiliates in Nepal. The flow of counterfeit Indian currency, previously inundating India via the Bangladesh border, is now prevalent through the Nepal border.

While the ISI has been actively targeting India’s northeastern states from Bangladesh, it has also intensified its focus on Nepal. Assessments by the Intelligence Bureau suggest that Nepal could potentially become a new battleground for the ISI's proxy war against India.

Although the ISI's primary focus remains the Line of Control (LoC) aimed at Jammu and Kashmir, it has begun exploring new fronts. As infiltrations along the LoC become increasingly challenging, Indian agencies are on high alert.

The strategy appears to be to keep Indian security forces preoccupied on multiple fronts, thereby stretching resources along the LoC and allowing the ISI to resume its operations there. Nevertheless, Indian officials assert that the armed forces are prepared to confront threats from any direction, although it poses a significant challenge.

In addition to attempting incursions from the Nepal border, the ISI has been investigating new infiltration routes. Historically, this route has been used to transport terrorists from Pakistan, but current warnings suggest that ISI activities could escalate dramatically.

During a recent investigation, the National Investigation Agency (NIA) uncovered a substantial racket aimed at enhancing the distribution of fake Indian currency. Previously, the counterfeit currency was smuggled via Bangladesh into India, often landing in Malda, West Bengal, before being disseminated across the country.

At present, counterfeit currency is being funneled into India in significant quantities through the Nepal border. Once in India, it is circulated nationwide. The primary motive for amplifying the fake currency racket is to generate funds for terrorist activities.

India's Operation Sindoor has dealt a severe blow to Pakistan-based terrorist groups, prompting a substantial need for funds to reconstruct the terror infrastructure that was dismantled in operations in response to the Pahalgam attack.

Data from the Reserve Bank of India (RBI) reveals that a considerable number of counterfeit notes have been discovered in India. In 2023, 225,769 fake currency notes were identified, while the figure rose to 222,639 in 2024.

Agencies are alarmed that this number may increase significantly as smugglers from Pakistan, in collusion with their counterparts in Bangladesh and Nepal, are likely to intensify their operations this year.

Recognizing the severity of the issue, a dedicated Terror Funding and Fake Currency Cell has been established within the NIA to tackle this growing menace.