SBP to introduce plastic currency notes in Pakistan, Senate committee told

ISLAMABAD: The State Bank of Pakistan (SBP) is considering replacing currency notes with denominations ranging from Rs 10 to Rs 5,000, the Senate Standing Committee on Finance told.

State Bank Governor Jameel Ahmed told the Senate Standing Committee that the central bank will soon introduce notes made from polymer paper besides paper currency notes after receiving federal cabinet approval.

“Plastic currency will rolled out nationwide if it proves to be more durable and secure than paper currency,” the SBP governor added. He said that new currency note denominations of Rs 10, 20, 50, 100, 500, 1000, and 5000 having all new features will be issued by December 2024.

Answering the question regarding the elimination of the Rs 5,000 note, Jameel Ahmed said that SBP is not currently considering unfolding the Rs 5,000 note. Moreover, he assured the Senate committee that the Rs5,000 note will be included in the upcoming redesign of all currency notes, scheduled for completion by December.

During the meeting, PTI’s Senator Mohsin Aziz proposed to phase out eliminating the Rs5,000 note, citing concerns about its role in facilitating corruption and other financial irregularities.

“The Rs 5,000 note will not be phased out and no such proposals are being considered.” The SBP governor said.