The proposal was presented during a meeting of the Senate Standing Committee on Finance, where State Bank officials briefed lawmakers on the design and production of new currency notes, their manufacturing costs and measures to prevent counterfeit currency.
Deputy Governor State Bank Dr Inayat Hussain said the central bank has requested that the Rs10 note be excluded from future issues of new currency notes. Instead, a Rs10 coin would be introduced as the smallest denomination, while the existing Rs10 notes would not be withdrawn immediately but phased out gradually after the new notes are issued.
Officials said producing Rs10 notes is relatively expensive, which is why replacing them with coins has been proposed.
The meeting was chaired by Senator Saleem Mandviwalla, who also raised concerns over delays in the introduction of new currency notes. State Bank officials said the initial designs prepared for the new notes had been rejected by a committee headed by the finance minister, and changes were now being made in light of its recommendations.
The new notes will include more advanced security features to help prevent counterfeiting. However, officials said it would not be possible to eliminate fake currency completely. They added that counterfeit currency circulation in Pakistan remains relatively low compared with other currencies, although fake Rs1,000 and Rs5,000 notes are currently more common.
Mandviwalla said there had also been complaints of counterfeit notes being dispensed by banks and ATMs. He said the increase in fake currency had led some shopkeepers to avoid accepting Rs1,000 and Rs5,000 notes.
During the meeting, Mandviwalla revealed that two years ago he had handed three Rs5,000 notes to the State Bank’s deputy governor, one of which was counterfeit, but officials were unable to identify the fake note.
He said the three notes had still not been returned after two years. His remarks prompted laughter among members of the committee.
State Bank officials said producing one Rs1,000 or Rs5,000 note costs around Rs14. They added that the current Rs5,000 note was designed nearly 20 years ago and plans are now underway to introduce a new design with updated security features for the next 20 years.
Senator Anusha Rahman questioned why the State Bank was not using artificial intelligence in designing the new currency notes. She warned that the approval process could take even longer if the design was sent back for further changes after approval by the relevant committees.
Mandviwalla also expressed concern over the slow pace of the process, saying committee members could complete their terms before the new notes are finally issued.
State Bank officials said the Cabinet Committee is currently finalizing the designs. Mandviwalla said a consultant company had also been hired to design the new notes, but the process was still facing delays.
The State Bank had earlier informed the Senate Finance Committee in February that it was preparing new designs for all currency notes from Rs10 to Rs5,000, with modern security features.
Once the new currency notes are introduced, the Rs10 note will gradually be withdrawn and replaced by a Rs10 coin, while the designs and security features of other denominations will also be updated.
