By Our Correspondent
ISLAMABAD: Pakistanis could soon say goodbye to the familiar Rs10 banknote, as the State Bank of Pakistan (SBP) has proposed excluding the denomination from the country’s upcoming series of redesigned currency notes and relying on the Rs10 coin instead.
SBP Deputy Governor Dr Inayat Hussain disclosed the proposal during a briefing to the Senate Standing Committee on Finance, saying the rising cost of producing the low-value banknote was behind the move.
Under the proposal, the Rs10 note would no longer be printed when Pakistan launches its new currency series, while the denomination would remain available in coin form.
The move, however, does not mean that Rs10 notes currently in people’s wallets will suddenly become worthless.
Why is Pakistan dropping the Rs10 note?
According to the SBP deputy governor, the cost of producing the Rs10 currency note has increased, making continued printing of the denomination less economical.
The central bank has therefore requested that the Rs10 note be discontinued from the next series of Pakistani banknotes.
The change would take place alongside the introduction of the country’s redesigned currency notes rather than through an immediate withdrawal of existing Rs10 notes.
No specific date for the introduction of the new currency series was announced during the briefing.
New Pakistani currency designs rejected
The Senate committee was also informed of a significant development concerning the designs of Pakistan’s new banknotes.
Officials said a committee headed by the finance minister had rejected the proposed designs, prompting further work on their appearance and features.
Dr Hussain said recommendations were now being incorporated into the designs, including changes to proposed features.
Pakistan’s existing currency series began entering circulation in 2005, and authorities are now preparing a redesigned series with updated features.
Fake Rs1,000 and Rs5,000 notes raise alarm
The discussion took another turn when officials and lawmakers raised concerns about counterfeit currency circulating in Pakistan.
Central bank officials told the committee that counterfeit Rs1,000 and Rs5,000 banknotes were among the fake denominations most frequently found in circulation.
An SBP executive director cautioned that introducing redesigned banknotes would not completely eliminate counterfeiting.
Committee Chairman Saleem Mandviwalla raised serious concerns over the issue, claiming that counterfeit notes were even being received through banks and ATM machines.
He said the prevalence of fake currency had created such concern that some shopkeepers were reluctant to accept Rs1,000 and Rs5,000 notes.
The SBP deputy governor, however, maintained that Pakistan’s level of counterfeit currency circulation remained comparatively low when compared with other currencies.
What happens to existing Rs10 notes?
For consumers, the most important point is that the proposal does not amount to an immediate ban on the Rs10 note.
The central bank’s plan relates to the next currency series, meaning existing Rs10 notes should not be treated as invalid merely because of the announcement.
Any formal withdrawal or change in the legal status of notes already in circulation would require official instructions from the relevant authorities.
Until then, consumers should avoid panic or unnecessarily exchanging their Rs10 notes based solely on the proposal discussed before the Senate committee.
Pakistan prepares for major currency makeover
The proposed disappearance of the Rs10 banknote will form part of a much broader transformation of Pakistan’s physical currency if approved.
Authorities are working on redesigned banknotes with new features while simultaneously addressing concerns surrounding counterfeiting.
For millions of Pakistanis, the most visible change could be simple but symbolic: the Rs10 denomination may survive, but the familiar paper note could eventually disappear from everyday transactions.