Proposal Aims to Save Billions Over Decade
ISLAMABAD, Feb 26 – The federal cabinet is considering in-principle approval to replace the Rs10 banknote with a coin in a move aimed at saving billions of rupees over the next decade. The proposal follows a comprehensive currency management report prepared by the State Bank of Pakistan (SBP) and the Pakistan Security Printing Corporation (PSPC), which a high-level committee led by the finance minister presented to the cabinet.
According to the report, a Rs10 note lasts only six to nine months on average, whereas a Rs10 coin remains in circulation for 20 to 30 years. Currently, about 35 percent of all banknotes printed annually are Rs10 notes, resulting in printing, exchange, and administrative costs of Rs8 to Rs10 billion each year. By contrast, authorities estimate that transitioning to coins could save between Rs40 and Rs50 billion over 10 years.
Gradual Phase-Out Planned
Although coins carry higher upfront production costs, officials note that their long lifespan makes them more economical in the long run. Consequently, the central bank plans to gradually phase out the printing of Rs10 notes over the next three years, following legal procedures under the State Bank Act.
Officials also highlighted environmental benefits, stating that reducing paper currency aligns with green banking initiatives. Moreover, several countries, including the United Kingdom, Canada, and Australia, have already replaced low-denomination notes with coins to improve durability and reduce recurring expenses.
If approved, the transition will mark a significant shift in Pakistan’s currency management strategy, focusing on long-term fiscal savings and operational efficiency while maintaining smooth circulation of small-denomination currency nationwide.
