The State Bank of Pakistan (SBP) has formally requested the discontinuation of the Rs10 currency note, with the denomination set to be replaced by a coin once new notes are issued. Deputy Governor Dr. Inayat Hussain shared this update while briefing the Senate Standing Committee on Finance.
Dr. Hussain told the committee that rising production costs prompted the decision, noting that the Rs10 note will be phased out once the new currency series is printed.
The meeting, chaired by Senator Saleem Mandviwalla, was also informed that the proposed design by the SBP for the new banknotes had been rejected by a committee headed by the Finance Minister.
Dr. Hussain said revisions incorporating new features and design changes are now being made based on the recommendations of the committee.
The Executive Director of the State Bank acknowledged that even the redesigned notes would not fully curb counterfeiting. Officials said fake notes are most prevalent in the Rs1,000 and Rs5,000 denominations.
Committee Chairman Mandviwalla noted that counterfeit currency is being dispensed through banks and ATMs, adding that the problem has grown to the point where many shopkeepers now refuse to accept Rs1,000 and Rs5,000 notes.
Dr. Hussain maintained that the rate of counterfeit currency circulation remains lower than in other countries.
Mandviwalla noted that the current currency series has been in print since 2005 and will now be fully replaced, adding that a contract for designing the new notes has already been signed with a consultancy firm.
Separately, Mandviwalla stated that the State Bank owes him Rs15,000, which has not been returned in two years, saying he had handed over three notes to the bank that have yet to be returned.
