SBP Deputy Governor Dr Inayat Hussain Briefs Senate Standing Committee On Finance. Rs10 Note Costs More To Print Than Its Utility Justifies. Rs5,000 Note Introduced In 2005 Now Vulnerable To Counterfeiting
According to Dawn, the State Bank of Pakistan is considering phasing out the Rs10 banknote due to rising printing costs, while a new design for the Rs5,000 note is being prepared to curb counterfeiting; disclosures made by SBP Deputy Governor Dr Inayat Hussain at the Senate Standing Committee on Finance and Revenue chaired by Senator Saleem Mandviwalla.
Dr Hussain noted that the existing Rs5,000 note was introduced in 2005 and advances in printing technology had since made counterfeiting significantly easier. A tender has been floated under procurement rules for the new design: four bidders participated, a consultant firm was awarded the contract and is currently incorporating the required security changes. The redesigned note will then require federal government approval before circulation, a process expected to take approximately one year. Printing a Rs5,000 note currently costs around Rs14.
Senator Mandviwalla told the deputy governor that he had submitted Rs5,000 notes for SBP verification two years ago but had received no response, and directed the SBP to provide complete details of the bidding process. Senator Anusha Rahman stressed the need to streamline approval processes, warning against repeated referrals for minor amendments that caused unnecessary delays.
The committee also reviewed the Pakistan Remittance Initiative noting that Rs120 billion in remittance subsidies had been provided to banks but curtailed due to fiscal constraints and examined the F.E. Circular 1999 covering protection of foreign investor deposits.
The Rs10 note is under review. The Rs5,000 note is being redesigned. Both are about the same underlying problem: printing currency that’s no longer worth what it costs to print.
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