Pakistan is gearing up for a significant change in its currency landscape as the State Bank of Pakistan (SBP) plans to replace all existing currency notes from Rs. 10 to Rs. 5,000 by the end of 2024. This major announcement was made by SBP Governor Jameel Ahmed during a meeting with the Senate Standing Committee on Finance and Revenue.

The central bank is introducing a new series of currency notes made from polymer, a material known for its enhanced durability and security features. The shift to polymer notes is part of the SBP’s broader strategy to curb counterfeiting, a problem that has plagued the country’s currency system for years.

Governor Jameel Ahmed informed the committee that the process of rolling out the new notes will commence once the federal cabinet gives its approval. The initial phase will involve the introduction of a test note made from polymer paper. This pilot note will be closely monitored for its performance in terms of durability and security. If the test is successful, the SBP will proceed with a nationwide rollout of the new notes.

During the meeting, concerns were raised about the potential misuse of the Rs. 5,000 note, particularly in the informal economy. However, Governor Ahmed assured the committee that the SBP has no intention of demonetizing the Rs. 5,000 note. He emphasized that while the central bank is responsible for the issuance of currency, law enforcement agencies are tasked with preventing the misuse of high-denomination notes. The Rs. 5,000 note will be included in the new polymer series, featuring updated security measures.

The introduction of polymer notes is a significant step forward for Pakistan’s financial system. Polymer notes are more durable than traditional paper notes, with a longer lifespan and greater resistance to wear and tear. Additionally, they offer advanced security features that make them harder to counterfeit, thereby enhancing the overall integrity of the country’s currency.

The SBP’s decision to update the currency comes at a time when the country is facing various economic challenges, including inflation and a depreciating rupee. The new notes are expected to help bolster public confidence in the currency by offering a more secure and durable alternative to the existing paper notes.

The new currency notes will likely feature modern designs and state-of-the-art security features, aligning Pakistan’s currency with global standards. The SBP is working with international suppliers to ensure that the new notes meet the highest standards of quality and security.

As Pakistan prepares for the rollout of these new notes, the public can expect to see a gradual transition from the old paper notes to the new polymer series. The SBP will likely implement a phased approach to ensure a smooth transition, with both old and new notes circulating simultaneously for a period of time.

The introduction of polymer currency notes is a positive development for Pakistan, signaling a move towards a more secure and modern financial system. As the year draws to a close, the country is set to witness the arrival of a new era in its currency history.