SBP plans new currency notes, Rs10 may be phased out

August 26, 2026 (MLN): The State Bank of Pakistan (SBP) is moving forward with plans to introduce a new series of currency notes incorporating enhanced security features, while the existing Rs10 note may be withdrawn from circulation due to rising production costs.

The development was shared with the Senate Standing Committee on Finance, where SBP Deputy Governor Dr. Inayat Hussain said the central bank had previously considered discontinuing the Rs10 denomination on two occasions, though those plans were never implemented.

He noted that the issue could be revisited following the introduction of the new banknote series, particularly in light of the increasing cost of printing the Rs10 note.

SBP officials informed the committee that Pakistan's current banknote series has been in circulation since 2005. The central bank is now working on a redesigned series aimed at strengthening security and reducing the risk of counterfeiting.

The proposed designs have already been discussed twice at the federal Cabinet level, while a relevant committee has also suggested amendments to certain aspects of the new notes.

During the meeting, Senate Standing Committee Chairman Senator Saleem Mandviwalla raised concerns over the appointment of a consultant's associated company for work related to the design of the new currency notes.

He questioned why the contract was awarded without a competitive bidding process and sought clarification over the selection of the company linked to the consultant.

Mandviwalla stressed that while the SBP enjoys institutional autonomy, it must continue to adhere to the applicable rules and procedures.

An SBP executive director, however, defended the arrangement, explaining that the company associated with the consultant would undertake the design work and other related assignments.

The committee also reviewed the issue of counterfeit currency in circulation. SBP officials maintained that the circulation of fake notes in the country had declined.

Mandviwalla directed the central bank to submit supporting data to the committee regarding the reported reduction in counterfeit currency.

The planned introduction of the new banknote series forms part of the SBP's broader effort to modernize Pakistan's currency and incorporate stronger security features into its notes.

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