KARACHI: Pakistan's central bank will introduce a new polymer plastic currency banknote later this year while also redesigning all existing banknotes to enhance security and incorporate hologram features.
State Bank of Pakistan Governor Jameel Ahmed informed a Senate committee on banking and finance in Islamabad that the redesign of all paper currency notes, with new security features, is expected to be completed by December this year. The denominations to be redesigned include Rs 10, 50, 100, 500, 1000, and 5000.
"The old notes will remain in circulation for five years, gradually being phased out by the central bank," a source close to the committee revealed.
In addition to the redesign, the State Bank plans to introduce a new polymer plastic banknote in one denomination later this year. "If it is received well by the public, plastic currency will be introduced in other denominations," Ahmed stated.
Currently, around 40 countries use polymer plastic banknotes, which are more difficult to counterfeit and offer enhanced security features, such as holograms and see-through windows. Australia was the first country to introduce polymer banknotes in 1998.
Governor Ahmed also confirmed that there are no plans to cancel the Rs 5,000 note, despite suggestions from some members of the Senate committee, including Mohsin Aziz, who argued that the high-denomination note facilitates corruption.