Pakistan’s federal cabinet has raised important questions over the proposed introduction of Pakistan new currency notes, including the possible use of polymer material and the plan to discontinue the Rs10 banknote. The matter was discussed during a high-level meeting chaired by Prime Minister Shehbaz Sharif, highlighting the government’s cautious approach toward major changes in the national currency system.
Cabinet members agreed that any decision affecting public currency must be taken after thorough technical, financial, and social evaluation. Ministers emphasized that while modernizing banknotes is necessary, public safety, cost efficiency, and long-term durability must remain top priorities.
Safety, Cost, and Public Concerns Raised
During the discussion, several ministers expressed concern about the safety of polymer-substrate banknotes, especially for young children. Some members pointed out that children often put currency notes in their mouths, raising questions about whether polymer materials are safe for regular human contact.
The proposal to replace the Rs10 banknote with a coin also faced scrutiny. Cabinet members asked for a detailed comparison between the production cost and lifespan of coins versus paper notes. According to officials, such a decision could have long-term financial implications for the government and affect daily transactions for the public.
The Finance Division briefed the cabinet that the current banknote series was introduced in 2005. Since then, global currency printing technology has advanced significantly, making an upgrade necessary to counter counterfeiting and improve durability. However, ministers stressed that modernization should not come at the expense of affordability or public convenience.
SBP Proposal and Cabinet’s Next Steps
The State Bank of Pakistan (SBP) has recommended a new banknote series with advanced security features to strengthen anti-counterfeiting measures. The proposed designs include wider security threads, holographic elements, improved watermarks, tactile marks for visually impaired users, and larger numerals for better readability.
The new notes have been designed by De La Rue International Limited of the United Kingdom through a competitive process. They also feature a refreshed portrait of Quaid-e-Azam Muhammad Ali Jinnah, sourced from the National Archives of Pakistan, along with traditional Islamic geometric and floral patterns.
SBP has suggested discontinuing the Rs10 banknote, stating that its printing cost is nearly 25 percent of its face value and its average lifespan is less than nine months. Under the proposal, the Rs20 note would become the lowest denomination banknote. Additionally, SBP has proposed issuing the Rs1,000 note on a trial basis using polymer material to assess durability, climate suitability, and public response.
After detailed deliberations, the cabinet decided not to approve the proposal immediately. Instead, the matter has been referred to a cabinet committee for in-depth review. The committee will examine design, material, safety standards, and cost implications before presenting recommendations, ensuring that any change to Pakistan new currency notes is well-informed and publicly responsible.
