The State Bank of Pakistan has recommended discontinuing the Rs10 banknote as work continues on Pakistan’s new currency series.
SBP Deputy Governor Dr Inayat Hussain disclosed the proposal during a Senate Standing Committee on Finance and Revenue meeting on Tuesday.
Senator Saleem Mandviwalla chaired the meeting, which also focused on counterfeit currency and the design of new banknotes.
The federal cabinet will make the final decision on the denominations of the new currency series.
The discussion came amid growing concerns over fake high-value notes reaching consumers through banking channels.
New Currency Notes Could Take Another Year
The deputy governor told senators that the government had formed a ministerial committee headed by the finance minister.
The committee is overseeing the design and issuance of the new currency notes.
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According to the briefing, the ministerial committee has approved the designs. The SBP is now working to meet required security and production standards.
However, the new notes may not reach the public soon.
The deputy governor said their introduction could take another year even after federal cabinet approval.
The SBP formally started work on a new banknote series in January 2024. At the time, it planned designs for all seven existing denominations.
These included Rs10, Rs20, Rs50, Rs100, Rs500, Rs1,000 and Rs5,000 notes.
The central bank said new designs would improve security and respond to advances in counterfeiting technology.
It later hired international banknote designers through a competitive process. The bank also held an art competition to collect local design ideas.
Senator Agha Shahzaib Durrani criticised the slow progress.
“Two years have passed, but the State Bank has not been able to complete this work,” he said.
Counterfeit Notes From ATMs Raise Alarm
Mandviwalla also raised serious concerns about reports of counterfeit notes coming from bank ATMs.
He referred to fake Rs5,000 and Rs1,000 notes and questioned how consumers could protect themselves.
“The biggest tragedy is that counterfeit notes are being dispensed by bank ATMs,” Mandviwalla said during the discussion.
The committee chairman said banks often do not replace counterfeit notes received through ATMs.
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“If a counterfeit note comes out of a bank ATM, where are the people supposed to go?” he asked.
Mandviwalla also recalled sending three Rs5,000 notes to the SBP for verification. According to him, one of those notes proved counterfeit.
He said the committee had still not received a complete response on the matter.
Officials told senators that the new currency system would strengthen safeguards against counterfeiting.
The SBP’s existing Rs5,000 note already includes several security features. These include a watermark, window security thread and optical variable ink.
The planned series will introduce newer security technologies and updated designs.
Rs5,000 Note Costs Around Rs14 to Produce
Senator Abdul Qadir asked officials about the cost of printing Pakistan’s highest denomination note.
The deputy governor said producing one Rs5,000 banknote costs approximately Rs14.
The committee also discussed the future of the Rs10 banknote.
Officials said the SBP had proposed discontinuing the denomination. Reports linked the proposal to its relatively high production cost compared with its face value.
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For now, the Rs10 note remains legal tender and continues to circulate. The SBP still lists it among Pakistan’s current banknotes.
Mandviwalla also questioned the appointment of consultants for the new currency project.
“This does not happen anywhere in the world. All details of this tender should be provided,” he said.
The SBP had formally sought consulting services in 2024 for the new banknote series. Its tender required professional designers to recommend security features and prepare printable designs.
Mandviwalla asked the SBP to provide the committee with full details of the tender process.
He also called for a briefing from an international banknote printing company on how modern currency production works.
Officials explained that designers initially prepare original banknote artwork before machines process it for production.
The committee also asked what safeguards would stop criminals from counterfeiting the new notes.
Officials said the entire currency production process would undergo changes. They expect the new system to significantly reduce counterfeit currency.
The Senate panel has also sought measures to stop fake notes from entering circulation through banks and ATMs.
The SBP has said modernising Pakistan’s banknotes will improve durability and security. Its original plan called for advanced printing techniques and stronger anti-counterfeiting features.
