The State Bank of Pakistan (SBP) is taking significant steps to enhance the security and durability of the nation’s currency. Under the leadership of Governor Jameel Ahmed, the central bank has announced plans to replace all existing currency notes ranging from Rs. 10 to Rs. 5,000 by the end of the year. This move is part of a broader strategy to combat counterfeiting and ensure that Pakistan’s currency remains secure and reliable.
Major Plans and Changes
Governor Jameel Ahmed addressed the Senate Standing Committee on Finance and Revenue, where he shared the central bank’s comprehensive plan to introduce new polymer currency notes. These notes, once approved by the federal cabinet, will gradually replace the current paper-based currency.
The decision to shift to polymer notes is rooted in the need for increased security features, which are more challenging to replicate, thereby reducing the risk of counterfeit currency in the market.
The transition will begin with a test note made from polymer paper. This initial phase is critical, as it will allow the central bank to assess the durability and effectiveness of the new material. If the test is successful, the polymer notes will be rolled out across the country, offering a more secure and long-lasting alternative to the existing currency.
Addressing Concerns About the Rs. 5,000 Note
A significant concern raised during the committee meeting was the potential misuse of the Rs. 5,000 note in the informal market. Some members of the committee suggested the possibility of demonetizing this high-denomination note to prevent its misuse. However, Governor Jameel Ahmed clarified that the SBP does not intend to demonetize the Rs. 5,000 note.
Instead, it will be included in the new design series, with enhanced security features to deter illegal activities.
The governor emphasized that the responsibility for preventing the misuse of currency, particularly the Rs. 5,000 note, lies with law enforcement agencies. The SBP’s role is to ensure that the currency in circulation is secure and difficult to counterfeit, while enforcement agencies must monitor and control any unlawful use.
Conclusion
The State Bank of Pakistan’s initiative to introduce new polymer currency notes represents a crucial step towards enhancing the security and durability of the nation’s money. By modernizing the currency, the SBP aims to combat counterfeiting and ensure that Pakistan’s financial system remains strong and reliable.
