Cabinet Raises Questions Over New Currency Notes

Federal cabinet members have raised concerns about the proposed use of polymer-substrate banknotes and called for further analysis of the possible discontinuation of the Rs. 10 banknote.

The issue came under discussion during a high-level cabinet meeting chaired by Prime Minister Shehbaz Sharif.

Sources said ministers stressed the need for greater diligence to ensure polymer banknotes are safe for human use, particularly in light of concerns that young children may chew the notes.

Cabinet members also questioned the proposal to replace the Rs. 10 banknote with a coin, calling for a detailed comparison of production costs and lifespan between the two.

Following extensive deliberations, the cabinet decided to refer the matter to a cabinet committee to thoroughly examine the design, material, and features of the new banknote series proposed by the State Bank of Pakistan (SBP).

The Finance Division informed the cabinet that the existing banknote series was introduced in 2005, and significant advancements in security and printing technology over the past two decades necessitated an upgrade.

The SBP Board has recommended a new banknote series to strengthen anti-counterfeiting measures and improve public identification of genuine notes.

Designed by De La Rue International Limited (UK) through a competitive process, the new notes feature advanced security elements, including wider windowed security threads, optically variable magnetic ink, holographic effects, enhanced watermarks, tactile marks, and large numerals for visually impaired users.

The series also carries a new portrait of Quaid-e-Azam Muhammad Ali Jinnah, sourced from the National Archives of Pakistan, along with Islamic geometric and floral motifs.

The SBP Board has proposed discontinuing the Rs. 10 banknote, citing a printing cost equal to 25 per cent of its face value and a lifespan of less than nine months. Under the proposal, the Rs. 20 note would become the lowest denomination banknote.

Additionally, the SBP has suggested issuing the Rs1,000 note on polymer substrate on a trial basis to assess durability, climatic suitability and public response before expanding polymer use to other denominations.