SBP mulls ending Rs10 note on rising costs

SBP mulls ending Rs10 note on rising costs.

Key points

• Mubarak Zeb Khan Published August 26, 2026 Updated August 27, 2026 07: 31am.
• Senators Sherry Rehman, Muhammad Abdul Qadir, Amir Waliuddin Chishti and Shahzaib Durrani additionally attended the gathering.
• Responding to the query, Dr Hussain remarked the existing Rs5, 000 note was introduced in 2005 and advances in technology had produced counterfeiting easier.
• Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.
• Senator Mandviwalla directed the SBP to provide complete details of the bidding process for the redesigned Rs5, 000 note, expressing concern over the circulation of counterfeit currency.

Mubarak Zeb Khan Published August 26, 2026 Updated August 27, 2026 07: 31am. Join our Whatsapp Channel. Add Dawn as a trusted source.

While a new design for the Rs5, 000 note is being prepared to curb counterfeiting, ISLAMABAD: The State Bank of Pakistan (SBP) is considering phasing out the Rs10 banknote due to rising printing costs.

In practice, the disclosure came from Deputy Governor Dr Inayat Hussain. This person briefed the Senate Standing Committee on Finance and Revenue.

He remarked the redesigned Rs5, 000 note would assist reduce the circulation of counterfeit currency.

For context, the committee session, chaired by Senator Saleem Mandviwalla, additionally discussed currency security, the Pakistan Remittance Initiative, protection of foreign investments and complaints regarding fraudulent practices by businesses. Intends new Rs5, 000 note to curb counterfeiting.

Dr Hussain remarked denomination changes could follow the introduction of new currency notes.

On counterfeit currency, Senator Mandviwalla informed the deputy governor that he had submitted Rs5, 000 notes to the SBP for verification almost two years ago, but the bank's response was still awaited.

He remarked a tender had been floated under procurement rules for designing the new note.

"Four bidders participated in the process and the contract was awarded to a consultant firm, which is currently incorporating the required changes, " he remarked, adding that the design would subsequently require federal administration approval.

Dr Hussain informed the committee that it could take regarding a year to introduce the new notes into circulation. He continued that printing a Rs5, 000 note cost around Rs14.

During the session, Senator Anusha Rahman stressed the need to streamline the approval process for currency designs, warning against repeated referrals for minor amendments that caused unnecessary delays.

Earlier this year, the committee was informed that new-design banknotes with enhanced security features had been finalised by the SBP and forwarded to the federal cabinet for approval.

In practice, the SBP additionally briefed the committee on the Pakistan Remittance Initiative (PRI), saying the administration had initially provided subsidies to banks to facilitate remittances by overseas Pakistanis.

For context, the committee was informed that Rs120 billion had been provided as subsidy. It was curtailed during the previous year.

Due to fiscal constraints, the administration was unable to continue the subsidy under the current budget.

Banks had therefore decided to bear the associated costs from their own resources to ensure continued facilitation of remittances.

For context, the committee appreciated the initiative and decided to invite selected banks to its next session to brief members on their performance and contribution to the remittance sector.

Notably, the committee additionally reviewed the F.E. Circular, 1999, concerning the protection of investments and deposits of foreign investors in Pakistan.

Dr Hussain informed the committee that instructions had been issued to concerned banks at the time to protect foreign investors' funds and that, according to SBP records, no such case remained pending with the central bank.

Nevertheless, the committee expressed concern over reports that some cases involving foreign investors were still pending and sought a detailed statement on such cases, if any, including their status and reasons for delay.

Senator Talha Mehmood expressed concern over firms operating in Pakistan that, despite reporting losses, may allegedly engage in fraudulent practices and mislead investors and shareholders concerning their financial position.

He remarked some businesses could eventually collapse or leave the country, causing financial losses to shareholders and the public.

He pressed the administration and relevant regulators to scrutinise such firms and take timely action against fraudulent practices to safeguard public investments.

Senators Sherry Rehman, Muhammad Abdul Qadir, Amir Waliuddin Chishti and Shahzaib Durrani additionally attended the gathering. Published in Dawn, August 26th, 2026.

Mubarak Zeb Khan is a senior staff correspondent for Dawn, bringing over two decades of experience to his coverage of political economy, trade, taxation, and public finance. He is a former Innovation Journalism fellow at Stanford University and a Chevening Scholar. He tweets @mubarakzebdawn.

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