Rs10 banknote to be replaced with coin as federal cabinet approves move
The federal cabinet has approved replacing Pakistan’s Rs10 banknote with a coin of the same denomination, months after the State Bank of Pakistan (SBP) dismissed reports that the currency note was being discontinued.
The decision was taken on the recommendation of the Ministry of Finance during a cabinet meeting that also approved designs for a new series of currency notes.
According to a statement issued by the Prime Minister’s Office, the cabinet was given a detailed briefing on the proposed designs, which were developed after inviting suggestions from artists and designers across the country.
A committee formed by the prime minister also held consultations with relevant stakeholders before presenting the designs for approval.
The meeting was informed that the new banknotes would feature enhanced security measures to prevent counterfeiting. Modern materials would also be used to increase their durability and lifespan.
SBP had earlier denied Rs10 note discontinuation reports
The cabinet’s decision follows the SBP’s rejection of social media reports in September claiming that the Rs10 banknote was being discontinued and that a deadline had been set for exchanging existing notes.
At the time, the central bank described the reports as baseless, clarifying that a proposal for a new banknote series was under consideration by the federal cabinet and no decision had been made to replace or discontinue any denomination.
The SBP had also said that any decision to withdraw banknotes would be formally announced, with sufficient time provided to the public to exchange discontinued currency.
Earlier, SBP Deputy Governor Dr Inayat Hussain told the Senate Standing Committee on Finance that the central bank was considering discontinuing the Rs10 banknote due to its increasing production costs.
He also revealed that the SBP had made two previous attempts to discontinue the denomination.
However, the latest cabinet decision does not specify when the Rs10 banknote will cease to be legal tender or set a deadline for exchanging existing notes.