Central bank cites rising production costs as officials brief Senate panel on redesigned banknotes and enhanced security features
ISLAMABAD: The State Bank of Pakistan (SBP) is considering discontinuing the Rs10 currency note when it introduces a new banknote series, a senior central bank official told a Senate committee on Tuesday.
SBP Deputy Governor Dr Inayat Hussain briefed the Senate Standing Committee on Finance about plans to introduce redesigned currency notes carrying stronger security features.
Hussain said the central bank had previously considered withdrawing the Rs10 note on two occasions. However, rising production costs have again prompted the SBP to review whether it should retain the denomination.
“The Rs10 note will be discontinued when the new currency notes are introduced,” he told the committee.
New Banknotes Under Cabinet Review
Officials informed senators that Pakistan’s current banknote series has remained in circulation since 2005. Consequently, the SBP plans to introduce a new series with upgraded security measures.
The federal cabinet has discussed the proposed notes twice and established a committee to examine their designs. Officials said authorities subsequently made significant changes to the proposed designs.
Moreover, Hussain said a federal cabinet subcommittee continues to review the banknotes, which will enter circulation only after authorities incorporate the required modifications.
He added that the SBP sent proposed designs to the Ministry of Finance about a year ago but had yet to receive a response.
Senators Raise Counterfeit Currency Concerns
Meanwhile, committee members questioned the process used to select consultants and companies involved in designing the new notes.
The committee chairman also raised concerns about counterfeit banknotes allegedly circulating through banks and ATMs. He claimed some retailers had become reluctant to accept Rs1,000 and Rs5,000 notes because of counterfeit fears.
However, Hussain said counterfeit currency was not widespread in Pakistan and offered to provide supporting data.
SBP officials also said they were considering public acceptability while designing the new currency.
Nevertheless, senators questioned how much public preference should influence banknote designs and stressed that the autonomous central bank must comply with applicable rules and procedures throughout the process.
