The State Bank of Pakistan (SBP) has acquired the bank-notes and prize bonds printing functions of Pakistan Security Printing Corporation (PSPC) from the Federal Government, we have confirmed it officially.
SBP — in order to gain control of said functions — paid Rs 100.149 billion to the Government of Pakistan (GoP) to get hold of PSPC.
Previously all government papers — including passports, National ID Cards, currency notes, prize bonds, stamp papers etc. — were printed by PSPC.
After recent changes in structure, PSPC will now be responsible for the printing of currency notes and prize bonds only. This company will now work under State Bank of Pakistan.
For other tasks, a new company — namely National Security Printing Company (Private) Limited (NSPC) — is formed and will come under the control of federal government.
NSPC will continue to print passports, National ID Cards and stamp papers for the federal government.
An announcement made by SBP said that it paid Rs 100.149 billion to the GoP in June 2017 for transfer of ownership and control of PSPC. Central bank said that it is fair value as determined by an independent consultant appointed for this purpose.
The SBP has since assumed control of the PSPC and deputed Muhammad Haroon Rasheed Malik, Executive Director of the Bank, as Managing Director of the company.
PSPC as fully owned subsidiary of SBP will run through an independent Board of Directors, in accordance with corporate governance best practices.
It maybe recalled that SBP had proposed the federal government some two years ago to hand it over the printing functions of currency notes and prize bonds. Government, in response, agreed to the proposal and it was successfully implemented.
SPB said that takeover of PSPC is in line with the global and regional standards and a number of central banks including Central Bank of France, Turkey, Italy, Australia, India and various other central banks have their own banknotes printing facilities.