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On Wednesday, State Bank Governor Jameel Ahmed announced that the design of Pakistan’s currency notes would be revamped by December. This announcement was made during a session of the Senate Standing Committee on Finance, chaired by Senator Salim Mandviwala. The revamped notes will feature enhanced security elements, addressing the need for modernized and secure currency in Pakistan.
Revamping the Currency Design
Governor Jameel Ahmed revealed that the State Bank of Pakistan (SBP) is actively working on the new designs, which are expected to be introduced following formal approval. The initiative aims to not only modernize the appearance of the currency notes but also to incorporate full security features, ensuring they meet international standards.
Potential for Digital and Plastic Currency
During the committee meeting, discussions also touched on the potential introduction of digital and plastic currency. Governor Ahmed noted that while the primary focus is on traditional currency notes, the SBP is considering the introduction of plastic notes. These plastic notes will be tested for public acceptance and durability. If successful, plastic notes could become a permanent feature of Pakistan’s currency system.
Environmental and Corruption Concerns
The proposal to introduce plastic currency sparked concerns among the committee members. Senator Shahzeb Durrani raised environmental issues, questioning the wisdom of moving towards plastic currency at a time when global efforts are focused on reducing plastic use. Governor Ahmed responded by assuring that thorough testing would be conducted to evaluate the environmental impact, durability, and public reception of plastic currency.
Another significant issue discussed was the potential for corruption linked to high-denomination notes, particularly the 5,000-rupee bill. Senator Mohsin Aziz highlighted concerns that such notes are often associated with corruption, being hoarded and used in illicit transactions. This concern underscores the complexities of managing the country’s currency and the need for careful consideration of any changes to the currency system.
Conclusion
The State Bank of Pakistan’s initiative to revamp the design of currency notes by December reflects a move towards modernizing the nation’s financial system. While the new designs promise enhanced security features, the discussions in the Senate Standing Committee on Finance highlighted the broader implications of currency changes, including environmental concerns and the potential for corruption associated with high-denomination notes.
