SBP Considers Phasing Out Rs10 Note

The State Bank of Pakistan (SBP) is examining the possibility of withdrawing the Rs10 banknote from circulation as the cost of producing low-value currency continues to increase. At the same time, the central bank is working on a redesigned Rs5,000 note featuring stronger security measures intended to make counterfeiting more difficult.

The developments were discussed during a meeting of the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla. SBP Deputy Governor Dr Inayat Hussain briefed lawmakers on the country’s currency-security arrangements and possible changes to existing banknote denominations.

Dr Hussain explained that the Rs5,000 denomination, which was originally introduced in 2005, is being redesigned because technological advancements have made sophisticated counterfeiting easier. According to the deputy governor, the SBP launched a tender for the redesign project, attracting four bidders before a consultant was selected to undertake the work.

The appointed consultant is currently incorporating the required modifications into the proposed design. Once the process is completed, the new banknote design will need to be submitted to the federal government for approval before production and circulation can begin.

Dr Hussain told the committee that introducing the redesigned currency could take approximately one year. He also revealed that producing a single Rs5,000 banknote currently costs around Rs14.

The deputy governor said the introduction of redesigned notes could also be followed by adjustments to the country’s existing currency denominations. Among the possibilities being examined is the withdrawal of the Rs10 note, as its relatively low value makes rising printing costs increasingly significant.

Committee Chairman Senator Saleem Mandviwalla requested information about the bidding procedure used for the Rs5,000 redesign and expressed concern over the continued circulation of counterfeit currency. He also pointed out that some Rs5,000 notes submitted to the SBP for authentication almost two years ago had reportedly yet to receive a response.

Senator Anusha Rahman urged authorities to simplify the approval process for redesigned banknotes. She argued that repeatedly sending proposed designs back for minor amendments could unnecessarily prolong the process.

Earlier this year, the Senate committee was informed that the SBP had completed designs for an entirely new series of banknotes containing upgraded security features. Those designs had subsequently been forwarded to the federal cabinet for consideration and approval.