The State Bank of Pakistan has started considering a proposal to phase out the Rs 10 paper note due to rising production costs. The current note will not be withdrawn immediately. It can be phased out in phases after the issuance of the new currency series.
State Bank Deputy Governor Dr Inayat Hussain briefed the Senate Standing Committee on Finance and Revenue on the matter. The committee meeting was chaired by Senator Saleem Mandviwala.
According to Dr Inayat Hussain, the cost of printing an Rs 10 note has become an important issue for the central bank. That is why the use of coins for this denomination is also being considered in the future. However, the final change in this regard will be linked to the plan to issue new currency notes.
The meeting also discussed in detail the new design of the Rs 5,000 note. According to the State Bank, the current Rs 5,000 note is part of the current currency series issued in the 2000s. According to the central bank’s records, the Rs 5,000 note was introduced on May 27, 2006.
Dr Inayat Hussain said that due to advances in technology, the methods of producing counterfeit notes have also improved. The aim of the new design is to reduce the risk of counterfeiting by adding modern security features to the currency.
A tender was issued for the design of the new Rs 5,000 note. Four bidders participated in the process. Later, a consulting firm was given the job. The firm is completing the required changes. The new design will be presented to the federal government for final approval.
According to the State Bank, it may take about a year to bring the new notes to the market after their preparation and approval. This means that the current note will not be phased out immediately.
The committee also discussed complaints about counterfeit currency. Senator Saleem Mandviwala said that he had sent the suspected Rs 5,000 notes to the State Bank for verification but was waiting for a response. He also sought full details of the bidding process for the design of the new note.
According to the State Bank’s website, the current currency series in Pakistan was issued in phases since 2005. This series includes notes of Rs 20, 50, 100, 500, 1000 and 5000.
The Pakistan Remittance Initiative was also discussed in the meeting. The committee was told that the government had provided subsidies to banks in the past to facilitate remittances of Pakistanis abroad. Due to financial constraints, it is difficult to continue this facility in the current budget. Banks have shown willingness to bear the expenses related to remittances from their own resources.
The committee also expressed concern over the protection of foreign investment and alleged financial irregularities of some companies. The members urged the relevant institutions to review the complaints in a timely manner to protect the interests of investors.
