KARACHI: Producing a Rs5,000 or Rs1,000 currency note costs Rs14, State Bank of Pakistan officials told the Senate Standing Committee on Finance.
The disclosure came during a meeting of the committee chaired by Senator Saleem Mandviwalla, where officials briefed lawmakers on the ongoing process of designing new currency notes.
State Bank officials said the existing Rs5,000 note was introduced around 20 years ago and the central bank is now working on a new design intended to remain in circulation for the next two decades.
They also told the committee that security features are being added to the redesigned currency notes.
Saleem Mandviwalla questions delay
During the meeting, Senator Saleem Mandviwalla questioned the pace of the new currency note design process.
He said the contract for designing the new notes had been awarded to a design consultant, but the State Bank had been working on the process for two years without producing the new notes.
“At this rate, our term will end and the new notes will not be made,” Mandviwalla remarked.
His comments drew laughter from members of the committee.
State Bank officials said the Cabinet Committee is currently finalising the designs of the new currency notes.
Rs10 note may be phased out
Officials also informed the committee that there was a proposal to gradually eliminate the Rs10 note, as producing it costs more relative to its value.
The officials said the phasing out would be carried out in stages.
During the discussion, Senator Anusha Rehman questioned why the State Bank was not making greater use of artificial intelligence in the design process.
She also raised concerns over the approval process, saying that repeated reviews by government committees could further delay the introduction of the new currency.
Mandviwalla raises fake note issue
The committee chairman also recalled an incident involving three Rs5,000 notes provided to the State Bank’s officials by a deputy governor two years ago.
According to Mandviwalla, one of the three notes was fake, but State Bank officials failed to identify it.
He said the three Rs5,000 notes had still not been returned after two years.
The meeting also discussed the need for stronger security features as the State Bank prepares to introduce redesigned currency notes.
