SBP mulls ending Rs10 note on rising costs
ISLAMABAD: The State Bank of Pakistan (SBP) is considering phasing out the Rs10 banknote due to rising printing costs, while a new design for the Rs5,000 note is being prepared to curb counterfeiting. The disclosure came from Deputy Governor Dr Inayat Hussain, who briefed the Senate Standing Committee on Finance and Revenue. He said the redesigned Rs5,000 note would help reduce the circulation of…
The State Bank of Pakistan (SBP) is contemplating discontinuing the Rs10 banknote due to escalating printing costs, while simultaneously developing a new design for the Rs5,000 note to curb counterfeiting, according to Deputy Governor Dr Inayat Hussain. Dr Hussain informed the Senate Standing Committee on Finance and Revenue that the redesigned Rs5,000 note would aid in reducing the circulation of counterfeit currency.
The committee, chaired by Senator Saleem Mandviwalla, also discussed currency security, the Pakistan Remittance Initiative, foreign investment protection, and complaints about fraudulent practices by companies. Dr Hussain stated that the existing Rs5,000 note, introduced in 2005, is now susceptible to counterfeiting due to technological advancements.
He mentioned that a tender had been issued for the new note's design, and four bidders participated in the process, with a contract awarded to a consultant firm currently finalizing the necessary changes. Senator Mandviwalla requested complete details of the bidding process, voicing concerns over the circulation of counterfeit currency.
Dr Hussain estimated that introducing the new Rs5,000 notes into circulation could take approximately a year. The committee also discussed the streamlined approval process for currency designs and the Pakistan Remittance Initiative, which had initially provided subsidies to banks facilitating remittances by overseas Pakistanis. However, due to fiscal constraints, the subsidy was reduced in the previous year, and banks decided to cover the associated costs from their own resources.
The committee appreciated the initiative and decided to invite selected banks to their next meeting to discuss their performance and contribution to the remittance sector. Regarding foreign investment protection, Dr Hussain informed the committee that no pending cases involving foreign investors remained with the central bank, though the committee sought a detailed statement on any such cases, if available, along with their status and reasons for delay.
Senator Talha Mehmood raised concerns over companies operating in Pakistan that may be engaging in fraudulent practices, despite reporting losses, and urged the government and regulatory authorities to scrutinize such companies and take timely action against fraudulent activities to safeguard public investments.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
