Pakistan’s New Currency Notes: State Bank Announces Major Update

ISLAMABAD: The State Bank of Pakistan (SBP) has proposed replacing the Rs10 banknote with a coin as part of plans to introduce a new series of currency notes.

SBP Deputy Governor Dr Inayat Hussain briefed the Senate Standing Committee on Finance that the central bank had recommended discontinuing the Rs10 note because the cost of printing and producing the denomination has increased significantly. Under the proposed plan, the Rs10 denomination will eventually be issued as a coin when the new currency series is introduced.

The committee was also informed that the initial designs prepared by the State Bank for the new banknotes had been rejected by a committee headed by the finance minister. The designs are now being revised in light of the recommendations, with additional security features and other improvements being incorporated.

Counterfeit currency was another major issue discussed during the meeting. Committee members expressed concern over the circulation of fake Rs1,000 and Rs5,000 notes in the market.

An SBP executive director told the committee that introducing new banknotes would not completely eliminate counterfeit currency. Senator Saleem Mandviwalla claimed that fake notes were also being dispensed through commercial banks and ATMs, prompting some shopkeepers and businesses to hesitate when accepting higher-denomination notes.

The SBP deputy governor, however, stated that the circulation of counterfeit currency in Pakistan remains relatively low compared with other countries.

Mandviwalla also pointed out that the existing currency series has been in circulation since 2005 and said all denominations would eventually receive new designs. The State Bank has already hired a consultant to assist with the design process.

The committee chairman further claimed that the SBP owed the consultant Rs15,000, which had reportedly remained unpaid for two years, adding another unusual detail to the discussion over the new currency designs.