New banknote designs finalized, await cabinet nod

Pakistan's central bank is taking significant steps to modernize its currency and bolster economic stability. The State Bank of Pakistan (SBP) has announced the finalization of designs for new currency notes, a move that signals a commitment to enhancing security and combating the persistent issue of counterfeit money. These new designs are now awaiting the federal cabinet's approval, marking a crucial step in the process.

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exchange company rates are fully determined by market forces, and the State Bank has no direct role in setting exchange rates.

The introduction of new banknotes, a practice typically undertaken every 15 to 20 years, is aimed at incorporating advanced security features. This initiative is part of a broader strategy to ensure the integrity of the nation's currency. Governor Jameel Ahmad shared these details during a meeting with the Karachi Chamber of Commerce and Industry (KCCI), where he also addressed a range of other economic concerns.

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progress was underway on the licensing and regulatory framework for virtual assets in Pakistan.

Beyond currency reform, Governor Ahmad provided an optimistic outlook on Pakistan's economic performance. He highlighted the country's current account surplus and projected a manageable overall deficit. Furthermore, he noted the significant growth in remittances, which are expected to exceed $41 billion this fiscal year, a testament to the effectiveness of SBP's reforms and strict measures against illicit financial flows like Hundi and Hawala. The governor also touched upon the progress in regulating virtual assets and the SBP's renewed focus on supporting small and medium enterprises (SMEs), with SME financing showing substantial growth.

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inflation could exceed seven per cent in the last quarter of FY26, but the State Bank remained committed to keeping inflation within the medium-term target range of 5-7pc.