State Bank of Pakistan Plans to Retire Rs10 Note Amid Counterfeit Concerns

In a significant move to address rising costs and counterfeit currency issues, the State Bank of Pakistan (SBP) is contemplating the discontinuation of the Rs10 banknote. This revelation emerged during a Senate Standing Committee meeting on Finance and Revenue, where Deputy Governor Dr. Inayat Hussain outlined the bank’s strategies for currency reform.

Dr. Hussain announced plans for a redesigned Rs5,000 note aimed at combating counterfeiting, acknowledging that the current note, introduced in 2005, has become increasingly vulnerable to forgery due to technological advancements. To facilitate this design overhaul, a tender process has already taken place, with a consultant firm selected to implement the necessary changes, pending federal approval.

The committee, led by Senator Saleem Mandviwalla, emphasized the urgency of these changes, particularly in light of Senator Mandviwalla's previous inquiry regarding Rs5,000 notes submitted for verification nearly two years ago, for which the SBP has yet to respond. Dr. Hussain indicated that it might take up to a year before the redesigned notes enter circulation.

In addition to currency discussions, the committee addressed the Pakistan Remittance Initiative, highlighting that financial support previously offered to banks for facilitating remittances has seen a reduction due to fiscal constraints. Banks are now responsible for covering these costs to ensure the continued flow of remittances from overseas Pakistanis.

Concerns were also raised regarding the protection of foreign investments, with calls for a detailed report on pending cases related to foreign investors. Senators expressed anxiety over companies potentially misrepresenting their financial health and urged regulatory scrutiny to safeguard public investments.

Source: www.dawn.com