Federal cabinet considers replacing Rs10 note with coin

ISLAMABAD: The federal cabinet is considering the in-principle approval to replace the Rs 10 currency note with a coin. According to sources, this move could potentially save Rs 40-50 billion over the next 10 years.

The currency management report prepared by a high-level committee headed by the Finance Minister has been submitted to the cabinet.

This report has been compiled by the State Bank and the Security Printing Corporation in accordance with the relevant laws.

According to the report, the average lifespan of a Rs 10 note is only 6 to 9 months, while a Rs 10 coin remains usable for 20 to 30 years.

About 35 percent of the total currency notes printed annually in the country are Rs 10 notes, which significantly increases the costs.

According to the document, the annual estimate of the printing, replacement, and administrative costs of the Rs 10 note is Rs 8 to 10 billion. Although the initial cost of producing the coin is relatively high, it does not need to be re-produced for decades, which can lead to long-term savings.

The report recommends that the State Bank of Pakistan phase out the printing of Rs 10 notes over a period of three years.

It should be noted that the Rs 10 coin was first issued on October 24, 2016, while the phase-out of notes is a legal process under the State Bank Act.