Pakistan, India’s neighboring country, is striving to strengthen its economy through various measures. From seeking loans from the World Bank to implementing domestic strategies, the country is leaving no stone unturned. Recently, the State Bank of Pakistan made a significant announcement regarding the introduction of polymer plastic currency notes by the end of this year. With this move, the central bank will also redesign all existing banknotes to enhance security features and incorporate holograms.
Insights from the Governor
The Governor of the State Bank of Pakistan, Jameel Ahmed, addressed the Senate Committee on Banking and Finance in Islamabad, revealing that all current paper currency notes would be redesigned with new security features by December of this year. Ahmed mentioned that new design banknotes in denominations of 10, 50, 100, 500, 1000, and 5000 Pakistani Rupees are slated for release in December, marking a crucial step in the country’s fiscal strategy.
Initial Phase with Trials
According to media reports, the old paper notes will remain in circulation for up to five years before being gradually withdrawn from the market. The Governor informed the Senate committee that a new polymer plastic banknote would be issued initially in one denomination, and based on public feedback, the central bank may consider issuing plastic currency in other denominations as well. This phased approach allows for smooth adaptation by the public and reduces potential confusion during the transition to the new currency.
Additional Information
This move towards polymer notes is not just about modernization but also about security. Polymer notes are more difficult to counterfeit, making them a valuable tool in combating fraud and enhancing economic stability.
The Global Shift to Polymer Currency
Currently, approximately 40 countries worldwide utilize polymer plastic banknotes, which feature advanced security measures like holograms and transparent windows, making them far more secure than traditional paper notes. Australia was the pioneer, introducing polymer banknotes in 1998, and since then, many countries have followed suit, recognizing the numerous advantages such as durability and cost-effectiveness.
No Plans to Withdraw High Denomination Notes
Ahmed has also clarified that there are no plans to discontinue the 5,000 Rupee banknote. However, Senator Mohsin Aziz expressed concerns that keeping higher denomination notes may facilitate illicit activities, thereby raising vital discussions about economic reforms and corruption management in the country.
