The State Bank of Pakistan (SBP) is preparing to introduce new currency notes with enhanced security features, and is also considering phasing out the Rs. 10 note, central bank officials told a Senate committee on Tuesday.
State Bank Deputy Governor Inayat Hussain said the central bank had twice previously attempted to discontinue the Rs. 10 note, but the plan remained unimplemented. He said rising production costs could lead to its withdrawal when the new currency notes are introduced.
Officials told the Senate Standing Committee on Finance that the printing of Pakistan’s existing currency notes began in 2005, adding preparations are underway for a new series. They said the federal cabinet had discussed the issue twice already, while a relevant committee had made some changes to the proposed designs of the new notes.
Committee Chairman Senator Saleem Mandviwalla questioned the State Bank’s appointment of a consultancy firm to undertake work related to the design of the new currency notes. He said the contract had been awarded without a bidding process, questioning why the same company associated with the consultant was given the design work.
“The State Bank is an autonomous institution, but rules must be followed,” he said, with an executive of the central bank defending the arrangement. He said the company associated with the consultant would carry out the design and other related work.
The committee also discussed the circulation of counterfeit currency, with SBP officials saying it had declined. To this, Mandviwalla sought data supporting the bank’s assessment of declining counterfeit currency circulation.