ISLAMABAD: The federal cabinet has begun considering in-principle approval to introduce a Rs10 coin in place of the existing Rs10 currency note as part of a broader currency management reform.
Officials said the move could result in potential savings of Rs40 to Rs50 billion over the next decade.
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A high-level committee headed by the Finance Minister has submitted a comprehensive currency management report to the cabinet for review.
The report has been prepared by the State Bank of Pakistan and the Security Printing Corporation of Pakistan in accordance with relevant laws.
According to the ICMA report, the average lifespan of a Rs10 note is only six to nine months, whereas a Rs10 coin can remain in circulation for 20 to 30 years.
Nearly 35 percent of the total currency notes printed annually consist of Rs10 notes. Introducing the Rs10 coin could generate savings of Rs40 to Rs50 billion over a 10-year period, while the annual cost of printing, replacing, and administrating Rs10 notes is estimated at Rs8 to Rs10 billion.
The report states that although the initial cost of minting coins is higher, they do not require frequent replacement for decades.
It has been proposed that the State Bank gradually phase out the printing of Rs10 notes over a three-year period.
The Rs10 coin was first issued on October 24, 2016. Phasing out the Rs10 note would be carried out under the legal framework of the State Bank Act.
Several countries, including United Kingdom, Canada, and Australia, have already replaced low-denomination notes with coins.
Reducing currency printing is also considered part of green banking initiatives.
