SBP Plans Redesigned Currency, Polymer Notes on Trial

The State Bank of Pakistan (SBP) is undertaking a comprehensive overhaul of all currency notes, incorporating advanced security features, and is also evaluating the issuance of polymer banknotes on a pilot basis, SBP Governor Jameel Ahmad informed a parliamentary committee.

The governor stated that the SBP’s board has approved redesigned layouts for all denominations and forwarded them to the federal government for final authorization, which remains pending. He added that state-of-the-art security technology would be embedded in the redesigned currency to enhance integrity and counter counterfeiting risks.

Addressing concerns over high-denomination notes, Ahmad categorically ruled out any proposal to discontinue the Rs5,000 note. Federal Board of Revenue Chairman Rashid Langrial cautioned that any disruption involving large-value currency could have adverse macroeconomic implications. Senate Standing Committee Chairman Saleem Mandviwala subsequently noted that the issue stood settled following the governor’s clarification.

In a separate discussion, the committee examined charges related to SMS alerts for ATM transactions. Mandviwala observed that bank customers are being charged for transaction-related messages, while the SBP governor clarified that alerts required for regulatory compliance are provided free of cost, and fees apply only to optional notification services. He further explained that such charges are collected directly by telecom operators, with no revenue share accruing to the SBP.

Ahmad also informed the committee that telecom companies have significantly increased SMS charges over the past two years, rising from approximately Rs0.04 to over Rs4 per message.