ISLAMABAD – The federal cabinet is considering the option of replacing Rs10 notes with coins to save billions of dollars in currency management costs over the next decade.
The plan comes from a detailed monetary operations report compiled by the Department of State. State Bank of Pakistan and Pakistan Security Printing CorporationThis was scrutinized by a high-level committee headed by the Finance Minister.
According to the report, the 10-rupee note has a surprisingly short shelf life, lasting only six to nine months before it needs to be replaced. In contrast, a coin of the same value can last as long as 20 to 30 years, effectively outliving generations of paper money. These small notes currently account for about 35% of all currency printed annually, with an estimated production and management cost of Rs. 8 to 10 billion dollars annually. If Pakistan switches to coins, officials claim the country will save Rs. $40 to $50 billion over 10 years.
Yes, coins cost more to initially produce, but their longevity makes them much cheaper in the long run. The central bank reportedly plans to withdraw the 10-rupee note in stages over the next three years after going through all legal procedures. This idea is not unprecedented. uk, Canadaand australia People are already ditching low-value banknotes in favor of coins, citing similar cost advantages and durability.
Pakistan is also attempting broader currency reforms. A redesign of banknotes ranging from Rs10 to a whopping Rs5,000 is under consideration, following recommendations from the central bank. Governor Jameel Ahmad said the new design with advanced security measures has already been completed and submitted for government approval after being approved by the bank’s board of directors. These upgrades aim to prevent counterfeiting and modernize the country’s cash system.
The final decision rests with the federal cabinet. No release date has been announced and the existing currency will remain legal tender even when the new design is introduced. Social media rumors that Rs5,000 notes would be withdrawn have been categorically dismissed as false. Officials claim that high-denomination notes remain an important part of Pakistan’s currency ecosystem, which currently totals 11 trillion rupees.