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The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, announced on Monday that the central bank plans to issue new currency notes in the second half of 2025, to replace existing notes gradually. This initiative aims to introduce banknotes featuring enhanced security features.
The SBP plans to seek approval from the federal cabinet to issue new currency notes within a period of two to three months, aiming for completion before June 2025, as stated by Governor Ahmad.
In upcoming distributions, the production of notes will occur in sets that encompass each denomination, rather than unveiling the entire range of new currency simultaneously. The Governor of the SBP highlighted that the ultimate decision regarding the release of the initial denomination is still not determined.
Currently, seven denominations of currency notes are in circulation in Pakistan: Rs10, Rs20, Rs50, Rs100, Rs500, Rs1,000, and Rs5,000. Jameel Ahmad explicitly stated that the newly designed currency notes will not enter circulation before the commencement of the new fiscal year, which spans from July 2025 to June 2026.
The Governor’s announcement regarding the new banknotes appears to contradict a recent statement issued by Security Papers Limited (SPL), the entity responsible for the production and distribution of specialized paper for both banknotes and non-banknote security documents.
In an announcement to the Pakistan Stock Exchange (PSX) last week, SPL disclosed its intentions to enhance its plant, with completion anticipated within 18 months. SPL has indicated that its paper manufacturing machinery was commissioned in 2004.
To facilitate the introduction of the new banknote series, it is urgently required to modify this machinery to incorporate security features already in use internationally. “Therefore, to meet the requirements for our key customer and to ensure business continuity, SPL would be upgrading the plant,” the SPC stated in the notice.
In September 2024, the SBP revealed the winners of its competition for the designs of the upcoming banknote series. In January 2024, the central bank commenced the design and issuance process for a new series of banknotes across all current denominations. An art competition has been announced for March 2024, inviting creative and thematic design concepts for the upcoming series of currency notes.
InvestPak Launch
At a recent press conference, SBP Governor Jameel Ahmad revealed that the central bank will introduce the InvestPak platform, aimed at enabling both individual and corporate investors to invest directly in government debt securities, such as Treasury Bills (T-bills) and Pakistan Investment Bonds (PIBs).
“The platform is currently in the testing phase and will be launched soon,” Ahmad confirmed. Investors will be able to access the platform by downloading its app, enabling them to invest and later sell sovereign debt securities in the secondary market.
At present, both individual and corporate investors face a challenging journey when it comes to investing in T-bills and PIBs via commercial banks. Ahmad responded to questions about the upcoming introduction of a Central Bank Digital Currency (CBDC), indicating that the SBP is improving its capabilities to roll out a CBDC. The central bank is set to receive the government’s endorsement of a bill that will establish the necessary legal framework to propel the CBDC initiative forward.
