The State Bank of Pakistan (SBP) is considering discontinuing the Rs10 currency note as part of its plans to introduce a new series of banknotes, Deputy Governor Dr Inayat Hussain told a Senate committee on Thursday.
Briefing the Senate Standing Committee on Finance about the proposed new currency notes, Hussain said the central bank had previously attempted twice to discontinue the Rs10 note.
He said the cost of producing the Rs10 denomination had increased, which was one of the factors behind the proposal. The denomination would be withdrawn once the new series of banknotes is introduced, he added.
Committee Chairman Senator Saleem Mandviwalla said the committee had asked the State Bank to replace all existing currency notes rather than selectively changing denominations.
SBP officials told the committee that the current currency series had been in circulation since 2005 and that a new series with enhanced security features was being planned. The matter had been discussed by the federal cabinet twice, while a cabinet committee had been formed to review the designs and recommend certain changes.
During the meeting, Mandviwalla questioned the process through which the new banknotes were being designed. He said the same consultant hired for the project had subsequently been tasked with designing the currency, and a contract had been signed with the consultant’s company.
An SBP executive director told the committee that the company associated with the consultant would carry out the work.
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Mandviwalla raised concerns over the absence of a bidding process, saying that although the State Bank was an autonomous institution, it was still required to follow applicable rules and procedures.
The committee also discussed the circulation of counterfeit currency. The SBP deputy governor said the circulation of counterfeit notes in Pakistan was relatively low. Mandviwalla, however, asked the central bank to provide statistics supporting the claim.
During the briefing, Hussain said public preference regarding the appearance and design of the new banknotes was also being taken into consideration. Senator Anusha Rahman questioned the relevance of such preferences, while Senator Shahzeb Durrani said considerations of liking or disliking should not be a factor in currency design.
The deputy governor further said a subcommittee of the federal cabinet was currently reviewing the proposed new banknotes. The cabinet had made significant changes to the designs, and the new notes could only be introduced after those changes were incorporated.
He added that the designs had been sent to the Ministry of Finance about a year ago and were still awaiting finalisation.
