Govt plans to replace Rs10 note with coin to save billions

The federal cabinet is weighing an in-principle move to stop issuing the Rs. 10 banknote and transition fully to a Rs. 10 coin, aiming to cut long-term currency management costs.

The proposal is based on a currency management assessment jointly prepared by the State Bank of Pakistan (SBP) and the Pakistan Security Printing Corporation (PSPC), which was presented to the cabinet through a committee led by the finance minister.

According to the assessment, Rs. 10 notes circulate for only around 6 to 9 months on average, while a coin can remain usable for roughly 20 to 30 years. The report notes that a significant share of the notes printed each year are in the Rs. 10 denomination, creating recurring printing, replacement, and administrative expenses estimated in the range of Rs. 8–10 billion annually.

While minting coins costs more upfront, the longer lifespan is expected to make the switch cheaper over time. The report estimates the change could deliver savings of around Rs. 40–50 billion over a decade, with the SBP expected to gradually wind down Rs. 10 note printing over the next three years, subject to legal steps under the State Bank Act.

Rs. 10 coins were introduced nationally in October 2016, and the report suggests the transition can be executed through a phased replacement plan.