Pakistan approves replacing Rs10 note with coin

Pakistan’s federal cabinet has approved replacing the existing Rs10 banknote with a coin of the same denomination as part of a broader plan to introduce a new series of currency notes.

The decision was taken during a cabinet meeting on the recommendation of the Ministry of Finance. The cabinet also approved designs for the proposed new currency notes, which will feature improved security measures and modern materials.

According to a statement issued by the Prime Minister’s Office, the cabinet was given a detailed briefing on the proposed designs. These designs were developed after suggestions were invited from artists and designers across the country.

A committee formed by the prime minister also held consultations with relevant stakeholders before presenting the designs for approval.

The new currency notes will incorporate advanced security features to prevent counterfeiting. Modern materials will also be used to make the notes more durable and extend their lifespan.

The decision regarding the Rs10 denomination follows earlier speculation about the withdrawal of the banknote. In September, the State Bank of Pakistan (SBP) rejected reports circulating on social media that the Rs10 note was being discontinued and that a deadline had been set for exchanging existing notes.

At the time, the central bank clarified that a proposal for introducing a new series of currency notes was under consideration by the federal cabinet. It said no final decision had been made about withdrawing or replacing any denomination.

The SBP had also assured the public that any decision to withdraw existing banknotes would be formally announced, with sufficient time provided to exchange them.

Earlier, SBP Deputy Governor Dr Inayat Hussain told the Senate Standing Committee on Finance that the central bank was considering discontinuing the Rs10 banknote because of its increasing production costs. He also revealed that the SBP had made two previous attempts to withdraw the denomination.

However, the latest cabinet decision does not specify when the Rs10 banknote will be replaced by a coin. It has also not announced when the existing notes will cease to be legal tender or set a deadline for their exchange.