State Bank considers scrapping Rs10 banknote

The State Bank of Pakistan (SBP) is considering discontinuing the Rs10 currency note as part of plans to introduce redesigned banknotes with

ISLAMABAD: The State Bank of Pakistan (SBP) is considering discontinuing the Rs10 currency note as part of plans to introduce redesigned banknotes with enhanced security features, officials told the Senate Standing Committee on Finance.

The committee met in Islamabad, where SBP Deputy Governor Dr Inayat Hussain briefed members on the proposed changes to the country’s currency notes.

According to the deputy governor, the central bank is considering withdrawing the Rs10 note because its production cost has increased. He said the Rs10 denomination had been targeted for discontinuation twice in the past, but the attempts were unsuccessful.

He clarified that the Rs10 note would be discontinued when the new series of currency notes is issued.

Committee Chairman Senator Saleem Mandviwalla said the committee had previously asked the State Bank to replace all currency notes. Dr Inayat Hussain said the existing currency series had been in circulation since 2005.

Officials told the committee that new banknotes would carry improved security features. The matter had been discussed twice by the federal cabinet. A committee formed by the cabinet had also proposed certain changes to the designs.

The issue of the process used to select the company for designing the new notes also came under discussion.

Chairman Saleem Mandviwalla questioned the decision to award the design work to the same company whose consultant had already been hired. He said no bidding process had been conducted before the design contract was awarded.

Mandviwalla said the State Bank was an autonomous institution, but it still had to follow relevant rules and procedures.

A State Bank executive director told the committee that the company associated with the consultant would carry out the entire assignment.

The committee also questioned claims regarding the circulation of counterfeit currency in Pakistan.

Dr Inayat Hussain said the circulation of counterfeit currency in the country was low. Mandviwalla asked the State Bank to provide data supporting the claim.

The deputy governor further said public preference regarding banknote designs was also being taken into consideration. Senator Anusha Rehman remarked that people generally liked currency notes regardless of their design.

Senator Shahzaib Durrani, however, said personal likes and dislikes should not be a factor in deciding currency designs.

Dr Inayat Hussain told the committee that a subcommittee of the federal cabinet was currently reviewing the proposed new banknotes. He said the cabinet had made significant changes to the designs.

The deputy governor said the new notes could only be introduced in the market after the proposed changes were finalised and approved.

He also informed the committee that the proposed currency designs had been sent to the Ministry of Finance about a year ago.