SBP Proposes Phasing Out Rs10 Note as Pakistan Redesigns Currency

The State Bank of Pakistan has proposed ending the Rs10 banknote when the country launches its next currency series, with the denomination instead continuing in coin form. The proposal was disclosed during a briefing to the Senate Standing Committee on Finance and Revenue on Tuesday and has quickly drawn public attention because the Rs10 note remains widely used in everyday cash transactions across Pakistan.

SBP Deputy Governor Dr Inayat Hussain told the Senate panel that the central bank had sought approval to discontinue printing the Rs10 note as part of the redesigned currency series. He explained that rising production costs were a key reason behind the proposal. The change would not amount to an immediate withdrawal of Rs10 notes already in circulation, as the transition is tied to the eventual introduction of Pakistan's new banknotes.

The Rs10 denomination would remain available through coins, meaning the proposal concerns the paper note rather than the value itself. Pakistan already has an Rs10 coin in circulation, and under the plan it would serve as the continuing physical form of the denomination once the new currency series is rolled out. Consumers would therefore not lose access to an Rs10 unit for cash payments.

The Senate committee, chaired by Senator Saleem Mandviwalla, was also briefed on progress toward redesigned Pakistani banknotes. Officials said proposed designs prepared for the new series had been rejected by a committee headed by the finance minister. The central bank is now incorporating recommendations, including adjustments to the appearance of the notes and the addition of updated security features before the designs advance further.

Counterfeit currency also featured prominently in the committee's discussion. Central bank officials acknowledged that redesigned notes and improved security measures would help strengthen protection against forgery but would not completely eliminate counterfeit currency. Reports presented during the meeting indicated particular concern about fake Rs1,000 and Rs5,000 notes, while committee members raised complaints about counterfeit notes allegedly entering circulation through banks and automated teller machines.

The planned currency overhaul is significant because Pakistan's existing banknote series has been in use for roughly two decades. Updating the designs and security features would affect millions of people, banks, retailers and cash-handling businesses. Any decision on the Rs10 note would also require a carefully managed transition so that the public understands which notes remain valid and when changes officially take effect.

For now, holders of Rs10 banknotes do not need to treat them as withdrawn. The proposal remains connected to the broader rollout of Pakistan's new currency series, and further formal decisions and implementation details are expected from the government and State Bank as the redesign process progresses. Attention will now focus on approval of revised banknote designs, the timetable for issuing the new series and official instructions governing the eventual phase-out of the Rs10 paper note.