ISLAMABAD: State Bank of Pakistan (SBP) officials have revealed that fake Rs1,000 and Rs5,000 banknotes are currently among the most widely circulating counterfeit currency in the country, while the central bank has also sought to discontinue the Rs10 banknote and replace it with a Rs10 coin.
The disclosure was made during a meeting of the Senate Standing Committee on Finance chaired by Senator Saleem Mandviwalla. SBP Deputy Governor Dr Inayat Hussain briefed the committee on the proposed designs and features of new currency notes.
Dr Hussain further informed that the central bank had asked for discontinuation of Rs10 banknotes. He made it clear that once the production of new banknotes starts in the future, the printing of Rs10 banknotes will stop while Rs10 coins will be issued instead.
r Hussain further clarified that there has been an increase in the cost of production of the Rs10 banknotes which is the reason behind their discontinuation. He further added that the current Rs10 banknotes will not be withdrawn at once.The denomination would be discontinued when the next series of currency notes is issued.
The committee was informed that a design prepared by the State Bank for the new currency notes had been rejected by a committee headed by the finance minister.
Dr Hussain said proposals were being incorporated to introduce new security features and make changes to the designs in light of the committee’s recommendations.
An SBP executive director told the committee that the introduction of new banknotes would not completely eliminate counterfeit currency. According to SBP officials, Rs1,000 and Rs5,000 counterfeit notes are currently among those most commonly found in circulation.
During the meeting, Senator Saleem Mandviwalla claimed that counterfeit currency was also being dispensed through banks and ATMs.
He criticised the central bank and said the SBP owed him Rs15,000. Mandviwalla said he had handed over three banknotes to the State Bank two years ago, but they had yet to be returned.
The committee discussed a range of issues related to the proposed new currency series, including banknote designs, security features, measures to curb counterfeit currency and the proposed replacement of the Rs10 note with a coin.
The proposed changes are expected to be considered further as authorities work on the design and security features of the country’s next series of currency notes.
