Business Desk
Aug 22, 2024
State Bank of Pakistan (SBP) Governor Jameel Ahmed has announced that the central bank will replace all currency notes by next year (2025).
The central bank is expected to finalise the designs by December and begin issuing the new notes in a phased manner, the SBP chief informed the Senate’s Standing Committee on Finance and Revenue.
Ahmed stated that the new notes are being prepared using polymer paper. "We are ready to introduce polymer currency notes," he said. "In the first phase, one denomination will be introduced, which will be presented to the cabinet for approval."
Addressing concerns about counterfeit notes, the governor noted that advanced security features would be incorporated into the new notes to prevent counterfeiting. Ahmed added that the bank is still evaluating the durability, cost, and long-term viability of these polymer notes.
Committee member Mohsin Aziz raised concerns about the Rs5,000 note, suggesting it contributes to corruption and should be discontinued. However, Ahmed clarified that there is no proposal under consideration to phase out the Rs5,000 note.
"Suggestions to discontinue it have been made before, but they were not accepted," he said. The Rs5,000 denomination will be part of the new currency design.
Ahmed also emphasised that law enforcement agencies are responsible for preventing the misuse of currency notes.
