Pakistan Rs5,000 Note Not Discontinued Amid Currency Upgrade

The State Bank of Pakistan (SBP) has clarified that the Pakistan Rs5,000 note not discontinued despite plans to introduce redesigned banknotes with improved security features. The announcement aims to calm public speculation about the future of the country’s highest denomination currency.

SBP Governor Jameel Ahmed shared the update during a briefing, confirming that the central bank’s board has finalized new designs for all currency denominations. These proposals have now been forwarded to the federal government for final approval. Once approved, the new notes are expected to strengthen protection against counterfeiting while improving durability.

Importantly, Ahmed dismissed rumors about withdrawing the Rs5,000 note. He stressed that the denomination will remain in circulation, signaling continuity in Pakistan’s monetary structure. As a result, businesses and consumers who rely on high-value notes can expect no immediate disruption.

Moreover, the governor revealed that plastic banknotes may be introduced on a trial basis. If implemented, the move would mark a major shift toward modern currency technology. Polymer notes typically last longer and resist damage better than traditional paper, which could reduce replacement costs over time.

During the session, officials also discussed banking charges that affect everyday customers. Committee members raised concerns about fees linked to SMS alerts for account transactions. In response, Ahmed clarified that mandatory security alerts remain free. However, banks may charge for optional service messages.

He further explained that telecom costs have surged sharply in recent years. According to the SBP, SMS charges increased from about Rs0.04 to more than Rs4 within two years. These payments go directly to telecom operators, and the central bank does not receive any share. Consequently, Committee Chairman Saleem Mandviwala announced that telecom companies will be called in to explain the rising costs.

Meanwhile, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial cautioned that tampering with high-denomination currency could destabilize the economy. Nevertheless, the committee considered the matter resolved after the governor reiterated that the Pakistan Rs5,000 note not discontinued policy remains unchanged.

Officials also reviewed other financial matters, including documentation requirements for opening bank accounts. Additionally, the governor confirmed that trade using the Chinese yuan is already underway, reflecting Pakistan’s efforts to diversify beyond the US dollar. Questions about currency rollover arrangements with the United Arab Emirates were deferred to the Foreign Office.

Overall, the planned redesign signals a broader push to modernize Pakistan’s financial system while maintaining stability. By keeping the Rs5,000 note in circulation, authorities appear focused on balancing technological progress with economic confidence.