ISLAMABAD: The State Bank of Pakistan (SBP) has proposed discontinuing the Rs10 currency note and replacing it with a coin, as the Senate Standing Committee on Finance was briefed on the production of new banknotes and the circulation of counterfeit currency.
SBP Deputy Governor Dr Inayat Hussain told the committee that the central bank had requested the withdrawal of the Rs10 note. Once new currency notes are introduced, the denomination would instead be issued in the form of a coin.
He said the cost of printing the Rs10 banknote had increased significantly, making it more economical to issue a coin of the same denomination.
The meeting, chaired by Senator Saleem Mandviwalla, was also informed that the designs prepared by the SBP for the new currency notes had been rejected by a committee headed by the finance minister.
Dr Inayat said the designs were being revised in light of the committee’s recommendations, with new security features and other required changes being incorporated.
The issue of counterfeit currency also came under discussion, with committee members expressing concern over the circulation of fake banknotes.
An SBP executive director told the committee that even the introduction of new banknotes could not guarantee the complete elimination of counterfeit currency. According to central bank officials, fake Rs1,000 and Rs5,000 notes are currently among the denominations most commonly found in circulation.
Senator Saleem Mandviwalla claimed that counterfeit notes were also being dispensed through banks and ATMs. He said the growing circulation of fake currency had prompted some shopkeepers to avoid accepting Rs1,000 and Rs5,000 notes.
The SBP deputy governor, however, said the circulation of counterfeit currency in Pakistan was relatively low compared with other countries.
Mandviwalla further noted that the existing banknote series had been in circulation since 2005 and said all denominations would eventually be issued with new designs.
He added that the SBP had already signed an agreement with a consultant company for designing the new currency notes.
The committee chairman also made an unusual disclosure, claiming that the SBP owed the consultant company Rs15,000, which had allegedly remained unpaid for the past two years. He said three notes had been provided to the central bank two years ago and had yet to be returned.
