ISLAMABAD, NOV 4: The federal cabinet has approved replacing the Rs10 banknote with a coin of the same denomination, marking a major policy decision months after the State Bank of Pakistan (SBP) dismissed reports of its discontinuation.
The decision was taken on the recommendation of the Ministry of Finance during a cabinet meeting that also approved designs for a new series of currency notes.
According to a statement from the Prime Minister’s Office, the cabinet received a detailed briefing on the proposed designs, which were developed after seeking suggestions from artists and designers across the country.
A cabinet committee constituted by the prime minister also held extensive consultations with relevant stakeholders before the designs were presented for approval.
The meeting was informed that the new currency notes would incorporate enhanced security features to prevent counterfeiting.
Modern materials would also be used to improve the durability and lifespan of the banknotes.
SBP had earlier dismissed discontinuation reports
The decision comes after the central bank rejected social media reports in September suggesting that the Rs10 banknote was being discontinued and that a deadline had been set for exchanging existing notes.
At the time, the SBP described the reports as baseless, saying a proposal for a new banknote series was under consideration by the federal cabinet and no decision had been taken on replacing or discontinuing any denomination.
The central bank had also clarified that any decision regarding the withdrawal of banknotes would be formally communicated to the public, with adequate time provided for exchanging discontinued currency.
Earlier, SBP Deputy Governor Dr Inayat Hussain had informed the Senate Standing Committee on Finance that the central bank was considering discontinuing the Rs10 banknote because of its rising production cost.
He had also disclosed that the SBP had made two previous attempts to discontinue the denomination.
The latest cabinet decision does not specify when the Rs10 banknote will cease to be legal tender or provide a deadline for exchanging existing notes.
