The federal cabinet has approved a policy to replace the Rs10 banknote with a coin of the same denomination. The decision was made based on a recommendation from the Ministry of Finance during a cabinet meeting that also authorized designs for a new series of currency notes.
According to a statement from the Prime Minister's Office, the cabinet was briefed on these new designs, which were created after the government sought suggestions from designers and artists across the country. A committee formed by the prime minister held extensive consultations with stakeholders before the designs were presented for approval. The meeting was informed that the new notes would feature modern materials to increase durability and enhanced security features to fight counterfeiting.
This move follows a period of conflicting information. In September, the State Bank of Pakistan (SBP) rejected social media reports claiming the Rs10 banknote was being discontinued and that a deadline for exchanging notes had been set. At that time, the SBP called the reports baseless, stating that while a new series was under consideration, no decision had been made to replace or discontinue any specific denomination. The central bank clarified then that any future withdrawal of banknotes would be formally communicated to the public with enough time for exchanges.
However, SBP Deputy Governor Dr Inayat Hussain had previously informed the Senate Standing Committee on Finance that the central bank was considering discontinuing the Rs10 banknote due to rising production costs. Dr Hussain also disclosed that the SBP had made two previous attempts to discontinue the denomination.
The latest cabinet decision does not specify when the Rs10 banknote will cease to be legal tender, nor does it provide a deadline for exchanging existing notes.
