The State Bank of Pakistan (SBP) is preparing for a significant overhaul of the country’s currency, with plans to introduce new banknotes for all denominations by December 2024. This development was shared during a recent briefing to the Senate Standing Committee on Finance, held on August 21, where SBP Governor Jameel Ahmed outlined the bank’s plans for currency revamp.
According to Governor Ahmed, the redesign will include notes ranging from Rs 10 to Rs 5,000, incorporating enhanced security features to combat counterfeiting and ensure the safety of transactions. Contrary to circulating rumors, the Rs 5,000 note will not be discontinued; instead, it will be redesigned, marking a fresh chapter in Pakistan’s monetary landscape. This announcement puts to rest the concerns regarding the potential phasing out of high-denomination currency notes.
One of the most anticipated aspects of the revamp is the potential introduction of plastic currency notes. Governor Ahmed mentioned that this modern alternative is being considered, particularly for its durability compared to traditional paper notes. Plastic notes have been successfully adopted in several countries due to their resistance to wear and tear, as well as their enhanced security features. The SBP will assess the feasibility of this option as part of its broader strategy to modernize Pakistan’s currency system.
In response to suggestions from Senator Mohsin Aziz to phase out the Rs 5,000 note to curb illegal activities such as smuggling, the SBP firmly rejected this proposal. The central bank is instead focusing on modernizing currency with advanced features, ensuring its continued relevance in the country’s financial system. This stance highlights the SBP’s commitment to preserving high-denomination notes while introducing cutting-edge improvements.
The new currency notes will not only enhance security but also symbolize progress in the nation’s financial infrastructure. As the central bank pushes forward with this initiative, Pakistanis can expect a refreshed and more secure currency soon.
