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Pakistan mulls phasing out Rs10 note amid rising printing costs
🇵🇰 Pakistan /Economy & Trade

Pakistan mulls phasing out Rs10 note amid rising printing costs

From Dawn · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Sources not specified New plan
  • Pakistan's central bank is considering discontinuing the Rs10 banknote due to increasing printing expenses.
  • A redesigned Rs5,000 note is in development to combat counterfeiting, with new notes expected in circulation within a year.
  • The Senate committee also addressed currency security, remittance initiatives, and foreign investment protection.

The State Bank of Pakistan (SBP) is contemplating the discontinuation of the Rs10 banknote, citing escalating printing costs as the primary driver for this potential move. This consideration was revealed by Deputy Governor Dr. Inayat Hussain during a briefing to the Senate Standing Committee on Finance and Revenue.

Alongside the potential phasing out of the Rs10 note, the SBP is actively working on a redesigned Rs5,000 banknote. Dr. Hussain explained that this new design aims to enhance security features and reduce the circulation of counterfeit currency. He indicated that the introduction of new currency notes could lead to denomination adjustments.

During the committee meeting, chaired by Senator Saleem Mandviwalla, concerns were raised regarding currency security and counterfeit notes. Senator Mandviwalla shared his experience of submitting Rs5,000 notes for verification nearly two years prior, with the SBP's response still pending. Dr. Hussain acknowledged that the existing Rs5,000 note, introduced in 2005, has become more susceptible to counterfeiting due to technological advancements.

The redesigned Rs5,000 note would help reduce the circulation of counterfeit currency.

— Dr Inayat HussainExplaining the purpose of the new Rs5,000 note design.

The process for the new Rs5,000 note design is underway, with a tender floated and a consultant firm awarded the contract. The design requires federal government approval, and Dr. Hussain estimates it could take approximately one year to introduce the new notes into circulation. The printing cost for a single Rs5,000 note is reportedly around Rs14.

The committee also received updates on the Pakistan Remittance Initiative (PRI), which has seen government subsidies curtailed due to fiscal constraints. Banks have now agreed to absorb the associated costs to ensure continued facilitation of remittances for overseas Pakistanis. Discussions also touched upon the protection of foreign investments and complaints regarding fraudulent company practices.

Four bidders participated in the process and the contract was awarded to a consultant firm, which is currently incorporating the required changes.

— Dr Inayat HussainDescribing the procurement process for the new Rs5,000 note design.
About this summary

Originally published by Dawn in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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