SBP to Phase Out Rs10 Banknote, Redesigns Rs5,000 Note to Fight Counterfeiting.
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The State Bank of Pakistan (SBP) is preparing to phase out the Rs10 banknote in favor of the existing Rs10 coin while finalizing a complete redesign for the Rs5,000 banknote. SBP Deputy Governor Dr. Inayat Hussain briefed the Senate Standing Committee on Finance and Revenue that rising production costs for low-denomination paper currency have made the Rs10 note economically unviable. Simultaneously, the SBP is overhauling high-denomination security features to counter sophisticated counterfeiting methods. The transition aligns with a broader revamp of Pakistan's banknote series—the first comprehensive redesign since the current series was introduced in 2005. The new currency notes will require final approval from a cabinet subcommittee before hitting the market, a rollout timeline expected to span approximately one year.
The State Bank of Pakistan (SBP) is moving to discontinue the Rs10 currency note and rely exclusively on the Rs10 coin for that denomination as part of an upcoming national currency redesign. At the same time, the central bank is finalizing security overhauls for the Rs5,000 banknote to curb counterfeiting.
Briefing the Senate Standing Committee on Finance and Revenue, SBP Deputy Governor Dr. Inayat Hussain stated that printing low-denomination paper currency has become cost-inefficient. The existing Rs10 banknote will remain legal tender until the central bank formally releases its new currency series, at which point paper Rs10 notes will be phased out.
Rs5,000 Security Upgrade & Printing Costs
First issued in 2005, the Rs5,000 banknote is undergoing a complete design transformation due to technological advances that have made older paper features vulnerable to modern high-resolution printing and duplication.
- Production Overhead: The central bank revealed that printing a single Rs5,000 banknote currently costs approximately Rs14.
- Consultant Engagement: Following a competitive bidding process involving four shortlisted vendors, a international consulting firm was contracted to integrate state-of-the-art security threads, watermarks, and micro-printing technology into the new notes.
- Rollout Timeline: Once final approval is granted by the Federal Cabinet, central bank officials estimate that physical production, testing, and public distribution will take roughly 12 months.
Senate Scrutiny Over Delays and Counterfeiting
During the parliamentary committee session, committee members raised concerns over the timeline for issuing the new banknote series. Committee Chairman Senator Saleem Mandviwalla cited instances where fake high-denomination notes had bypassed automated sorting and reached commercial circulation, urging the central bank to accelerate its anti-counterfeiting measures.
Subcommittee reviews under the Ministry of Finance are making minor layout and artistic modifications to the banknotes before submitting the finalized series to the Prime Minister and Federal Cabinet for formal endorsement.
