The State Bank says rising printing costs have prompted a proposal to replace the Rs10 banknote with a coin, while new currency designs are being revised.
The State Bank of Pakistan has proposed ending the Rs10 banknote and replacing it with a coin as part of plans to introduce redesigned currency notes.
The proposal was discussed during a meeting of the Senate Standing Committee on Finance chaired by Senator Saleem Mandviwalla. State Bank Deputy Governor Dr. Inayat Hussain briefed the committee on plans for the new currency notes.
According to the briefing, the central bank has requested the discontinuation of the Rs10 banknote because the cost of printing the denomination has increased. Once the new currency notes are issued, a Rs10 coin could be introduced instead.
Officials also said designs prepared by the State Bank for the new banknotes had been rejected by a committee headed by the finance minister. Dr. Inayat Hussain said changes and new security features were being incorporated in the designs based on the committee’s recommendations.
The committee also discussed concerns over counterfeit currency. State Bank officials said the new notes could not guarantee the complete elimination of counterfeit currency. At present, counterfeit Rs1,000 and Rs5,000 notes are reportedly more common.
Mandviwalla claimed that counterfeit notes were also being dispensed through banks and ATMs, saying some shopkeepers had begun avoiding higher-denomination notes. The deputy governor said counterfeit currency circulation in Pakistan was relatively low compared with other countries.
Mandviwalla said the existing currency notes had been in circulation since 2005 and that all denominations would eventually be issued with new designs. He added that an agreement had been signed with a consultant company for designing the new notes.
He also said the State Bank owed the consultant company Rs15,000 and that the amount had remained unpaid for two years. According to him, three notes had been provided to the State Bank two years ago and had not yet been returned.
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