End of an Era: Govt Approves Replacing Rs10 Banknote with Coin

Federal cabinet approves new currency designs with enhanced security features; move follows earlier phase-out of lower-denomination banknotes

Business Desk 

ISLAMABAD: The familiar Rs10 banknote may soon become a thing of the past, with the federal cabinet approving its replacement with a coin of the same denomination, marking another major change in Pakistan's currency history.

The decision was taken at a cabinet meeting chaired by Prime Minister Shehbaz Sharif on Wednesday, according to a statement issued by the Prime Minister’s Office.

The cabinet also approved the designs of new currency notes on the recommendation of the Ministry of Finance. According to a statement, 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, in August, SBP Deputy Governor Dr Inayat Hussain informed the Senate Standing Committee on Finance and Revenue that the central bank had proposed withdrawing the Rs10 banknote after the introduction of the new currency notes.

The committee was also informed that approximately one year would be required to introduce the new banknotes into circulation. The printing cost of a Rs5,000 banknote was approximately Rs14, according to a Senate Secretariat statement.

During the meeting, the SBP deputy governor said the existing Rs5,000 banknote had been introduced in 2005 and technological advancements had made counterfeiting easier.

The central bank had initiated the process of designing and issuing a new series of banknotes covering all existing denominations in January 2024. It subsequently launched an art competition in March 2024, inviting innovative and thematic design proposals.

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.