ISLAMABAD: The State Bank of Pakistan (SBP) is considering discontinuing the Rs10 currency note because of its rising production cost, a senior central bank official told a Senate committee.
SBP Deputy Governor Dr Inayat Hussain made the remarks during a briefing before the Senate Standing Committee on Finance, where officials discussed plans for introducing a new series of Pakistani banknotes with enhanced security features.
According to Dr Hussain, the central bank has previously attempted twice to discontinue the Rs10 note. He said the denomination would be withdrawn when the new currency notes are introduced.
New Banknotes to Have Enhanced Security Features
The existing series of Pakistani banknotes has been in circulation since printing began in 2005. The SBP is now working on a new series that will include improved security features designed to make the notes more difficult to counterfeit.
Dr Hussain said the issue of redesigning the currency had been discussed twice by the federal cabinet.
A cabinet committee was subsequently formed to review the proposed designs and introduce changes. The designs are still being reviewed, meaning the new notes cannot enter circulation until the process is completed.
The SBP had reportedly submitted proposed currency designs to the Ministry of Finance about a year ago.
Cabinet Reviewing Currency Designs
Dr Hussain told the committee that a subcommittee of the federal cabinet is currently examining the proposed banknotes.
He said the cabinet had made significant changes to the designs and that the final versions would have to be approved before the new notes could be issued to the public.
The federal government had earlier decided to introduce new banknotes featuring enhanced security features and improved security threads.
In January 2026, members of the federal cabinet were informed that new banknotes would be introduced in denominations of Rs100, Rs500, Rs1,000 and Rs5,000.
The proposed new series would therefore focus on higher-value denominations rather than introducing a replacement Rs10 note, according to the information shared with the Senate committee.
Questions Raised Over Design Contract
The process of preparing the new currency designs also came under scrutiny during the Senate committee meeting.
Committee Chairman Senator Saleem Mandviwalla questioned the procedure used to hire the consultant responsible for designing the new banknotes.
According to Mandviwalla, the contract was awarded to the consultant’s company without an open bidding process. An SBP executive director told the committee that the company associated with the consultant would carry out the work.
Pakistan Plans New Currency Notes with Modern Designs and Enhanced Security
Mandviwalla stressed that although the State Bank is an autonomous institution, it remains required to follow applicable rules and procedures.
The questions raised during the meeting indicate that the committee is also examining the administrative and procurement aspects of the currency redesign project, rather than focusing solely on the appearance and security features of the new notes.
When Will New Notes Be Issued?
The timeline for the introduction of the new currency series has not yet been finalised because the designs are still under review.
SBP Deputy Governor Saleemullah previously told Geo News that the new banknotes are expected to be issued between November and December 2026.
However, the final launch date will depend on the completion of the design process, approval by the relevant authorities and the necessary preparations for printing and distribution.
If the Rs10 note is ultimately discontinued, the change would form part of the broader transition to the redesigned currency series.
Why the Rs10 Note May Be Withdrawn
The main reason cited by the SBP for considering the withdrawal of the Rs10 note is its rising production cost.
Lower-denomination banknotes can become increasingly expensive to produce and maintain when their purchasing power declines over time. If the cost of producing and handling a denomination becomes disproportionately high compared with its value and usage, central banks may consider replacing it with coins or withdrawing it altogether.
For now, however, the discontinuation of the Rs10 note remains under consideration. The SBP’s final decision is expected to be linked to the launch of the new currency series and the completion of the government’s review of the proposed designs.
