Black Market for Stamp Papers Expands as Treasury Fraud Unfolds. A serious financial scandal in Pakistan has triggered a growing black market for stamp papers, making it harder and more expensive for ordinary people to access basic legal documents. As investigations deepen, fresh details are emerging about large-scale irregularities inside the Federal Treasury Office, raising concerns about weak oversight and long-standing revenue losses.
Stamp Papers Disappear From Open Market
Officials say low-denomination stamp papers have almost vanished from the open market. These papers are widely used for affidavits, property deals, court filings, and other legal work. Due to shortages, they are now being sold illegally at much higher prices, putting extra pressure on lawyers, businesses, and citizens who need them daily.
Investigators believe the shortage is directly linked to a widening treasury scam that allowed stamp papers to be issued without money being deposited into government accounts.
Rs. 296 Million Issued Without Payment
According to officials involved in the probe, stamp papers worth Rs. 296.49 million were released even though the required amount was never deposited into the national treasury. During questioning, arrested suspects admitted that the funds never reached state accounts.
Initial findings also show that court fees and foreign bills followed the same pattern. Money was collected, but it was not credited to government records.
Thousands of Fake Challans Detected
The inquiry has uncovered 2,638 fake and bogus challan forms allegedly issued by the Federal Treasury Office. Even more troubling, the office reportedly has not been audited for the past four years, allowing the fraud to continue unchecked.
The investigation team has formally asked why regular audits were skipped and has written to relevant authorities to fix responsibility for the lapse.
Court Rejects Bail of Treasury Staff
So far, 16 employees of the Federal Treasury Office have been arrested in connection with the case. Their bail applications have been rejected by the court, signaling the seriousness of the charges.
Separately, the Federal Investigation Agency has launched its own inquiry into the black marketing of stamp papers and announced action against vendors involved in illegal sales.
How the Scam Worked
Earlier reporting by ProPakistani revealed that treasury officials were allegedly working with stamp vendors. Vendors obtained stamp papers using fake deposit slips without depositing money into the State Bank of Pakistan.
Under normal rules, vendors must first deposit fees with the SBP before receiving stamp papers from the treasury. Investigators say this process was bypassed using forged documents since 2021.
The fraud remained hidden for years because there was no real-time verification system between the State Bank and the Federal Treasury Office.
High-Level Probe and FIR Registered
After the issue came to light, a high-level inquiry committee was formed, and an FIR was registered against several stamp vendors. Some suspects reportedly fled abroad to avoid arrest.
Officials warn that the total financial damage could run into billions of rupees, making this one of the largest revenue leakages in recent years.
Why This Matters for the Public
This scam does not just affect government accounts. It directly impacts citizens by:
- Raising the cost of legal documents
- Delaying court cases and property deals
- Encouraging black markets and corruption
- Reducing public trust in financial institutions
Until proper controls, audits, and digital verification systems are put in place, experts fear similar frauds could continue.
Conclusion
The stamp paper scandal has exposed deep flaws in Pakistan’s treasury and verification systems. With millions already lost and shortages hurting the public, swift reforms are now critical. Strong audits, real-time coordination between institutions, and strict action against those involved are essential to stop further damage and restore confidence in the system.
