Khashif Talks Unlock Knowledge & Explore with Khashif Talks!
SBP to Replace All Currency Notes with Polymer by Year-End
The State Bank of Pakistan (SBP) is set to introduce a significant change in the nation’s currency landscape. Governor Jameel Ahmad has announced that all currency notes will be replaced with new ones made from polymer paper by the end of this year. This announcement was made during a briefing at the Senate’s Standing Committee on Finance, chaired by Senator Saleem Mandviwalla.
Why Polymer Notes?
The introduction of polymer currency notes is a strategic move by the SBP to enhance the security and durability of Pakistan’s currency. Governor Ahmad stated that the bank is fully prepared to bring in these polymer notes, with the process expected to be completed by year-end.
In the initial phase, one denomination will be introduced, which will first be presented to the cabinet for approval. This marks the beginning of a nationwide rollout that will eventually see all paper notes replaced.
Enhanced Security Features
One of the primary motivations behind this move is to combat the growing problem of counterfeit currency. The new polymer notes will incorporate advanced security features designed to make counterfeiting extremely difficult, if not impossible. The SBP is currently assessing the durability, cost, and long-term viability of these polymer notes, ensuring that they meet the needs of the country.
Debate Over the Rs5,000 Note
During the committee meeting, Senator Mohsin Aziz raised concerns about the Rs5,000 note, suggesting that it contributes to corruption and should be discontinued. However, Governor Ahmad clarified that there is no proposal under consideration to phase out the Rs5,000 note. He acknowledged that similar suggestions had been made in the past, but they were not accepted. The Rs5,000 denomination will remain a part of the new currency design.
Law Enforcement’s Role
Governor Ahmad also emphasized that while the SBP is introducing these new, secure notes, the responsibility of preventing the misuse of currency largely falls on law enforcement agencies. The advanced security features of the new polymer notes are expected to aid in this effort, but effective enforcement remains crucial.
