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The federal cabinet has raised questions over Pakistan’s proposed new currency notes, particularly the use of polymer material, prompting a decision to send the matter for further review.
The issue was discussed during a cabinet meeting chaired by Prime Minister Shehbaz Sharif, where ministers called for a more detailed assessment before moving ahead with changes suggested by the State Bank of Pakistan (SBP).
According to sources, some cabinet members expressed concern over the safety of polymer-substrate banknotes, especially whether the material is suitable for everyday handling. Ministers also pointed to a common household issue, noting that young children often put currency notes in their mouths, and stressed that health aspects must be carefully examined.
Rs 10 Note Replacement
The SBP has recommended discontinuing the Rs 10 banknote, citing that its printing cost amounts to around 25% of its face value and that the note remains in circulation for less than nine months. If approved, the Rs 20 note would become the lowest denomination banknote in the country.
Another key concern was the proposal to replace the Rs 10 banknote with a coin. Cabinet members questioned whether the shift would actually be cost-effective and asked for a clear comparison between the production cost, durability, and lifespan of a coin versus a paper note.
Following deliberations, the cabinet decided to refer the proposal to a cabinet committee. The committee will examine the design, material, security features, and overall practicality of the new banknote series before any final approval.
Why the Currency Needs an Upgrade
The Finance Division briefed the cabinet that Pakistan’s current banknote series was introduced in 2005 and has remained largely unchanged since then. Over the past two decades, significant advancements have been made in printing and security technologies, making an upgrade necessary to counter counterfeiting and improve note recognition.
The SBP Board has already approved a proposal for a new series of banknotes, aimed at strengthening security features and helping the public better identify genuine currency. The new designs were developed by De La Rue International Limited (the world’s largest commercial banknote printer) of the United Kingdom through a competitive process.
According to the proposal, the new notes will include modern security elements such as wider windowed security threads, optically variable magnetic ink, holographic features, improved watermarks, tactile markings, and larger numerals to assist visually impaired users. The notes will also feature a new portrait of Quaid-e-Azam Muhammad Ali Jinnah, sourced from the National Archives of Pakistan, along with Islamic geometric and floral patterns.
Meanwhile, the central bank has suggested issuing the Rs 1,000 note on a polymer substrate on a trial basis to test durability, suitability for Pakistan’s climate, and public acceptance before extending polymer use to other denominations.
