ISLAMABAD: Pakistan is phasing out its Rs 10 denomination currency note and introducing Rs 5,000 new banknote. The deputy governor of the State Bank of Pakistan (SBP) revealed this in a meeting of the Senate’s standing committee on finance and revenue today.
The SBP official said the central bank is considering phasing out the Rs10 banknote because of rising printing costs, while preparing a redesigned Rs5,000 note to tackle counterfeiting.
Senator Saleem Mandviwalla chaired the meeting of the committee. It discussed currency security, remittances, foreign investments and fraudulent corporate practices.
Plans new Rs 5,000 note to curb counterfeiting
Dr Hussain said the SBP could change currency denominations after introducing redesigned notes. He added that the current Rs 5,000 note entered circulation in 2005.
According to him, technological advances have made counterfeiting easier, creating a need for stronger security features.
The SBP floated a tender under procurement rules to develop the new design. Four bidders participated, and the central bank awarded the contract to a consultant firm. The firm is now incorporating required changes before the design goes to the federal government for approval.
New currency could take a year
Meanwhile, Mandviwalla raised concerns about counterfeit Rs5,000 notes and asked the SBP to provide details of the bidding process.
Dr Hussain said the new notes could take about a year to enter circulation. He also revealed that printing one Rs5,000 note costs around Rs14.
Furthermore, Senator Anusha Rahman urged authorities to simplify the approval process for currency designs.
She warned that repeated referrals over minor amendments could cause unnecessary delays.
It may be noted that the State Bank of Pakistan has been waiting for the cabinet approval to introduce new design banknotes.
