Karachi: Pakistan's central bank, the State Bank of Pakistan (SBP), is set to introduce a new polymer plastic currency note later this year as part of a broader initiative to redesign all existing banknotes with enhanced security features. The SBP Governor, Jameel Ahmed, shared this development with a Senate committee on banking and finance in Islamabad.
Ahmed announced that the redesigned banknotes, featuring advanced security elements and holograms, will be rolled out in December 2024. The redesign will apply to denominations of Rs 10, 50, 100, 500, 1000, and 5000. The current paper currency notes will remain in circulation for five years before being gradually phased out by the central bank.
As part of this initiative, the SBP will also issue a polymer plastic banknote in one denomination to gauge public reception. If the polymer note is well-received, the bank plans to expand the use of plastic currency across other denominations.
Polymer banknotes, which are more difficult to counterfeit and include advanced security features such as holograms and see-through windows, are currently used by around 40 countries. Australia pioneered the use of polymer banknotes in 1998.
Governor Ahmed also addressed concerns about the Rs 5,000 note, confirming that there are no plans to discontinue it, despite calls from some quarters, including Senate member Mohsin Aziz, who argued that the high-denomination note facilitates corrupt activities.
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