SBP Governor Jameel Ahmed Announces Introduction of Polymer Currency Notes
In a significant development for Pakistan’s monetary system, Jameel Ahmad, the Governor of the State Bank of Pakistan (SBP), has announced a major overhaul of the country’s currency notes. During a briefing at the Senate’s Standing Committee on Finance, which was chaired by Senator Saleem Mandviwalla, Ahmad revealed that the SBP plans to replace all existing currency notes with new ones by the end of this year.
This decision marks a pivotal shift in Pakistan’s currency management, as the SBP prepares to introduce notes made from polymer paper—a modern material known for its durability and security features. Ahmad outlined that the transition to polymer notes is expected to be completed within the year, with the initial phase involving the introduction of a single denomination. This initial design will soon be presented to the cabinet for formal approval.
Addressing the committee, Ahmad stated, “We are ready to bring in polymer currency notes. In the first phase, one denomination will be introduced, which will be presented to the cabinet for approval.” The introduction of polymer notes is anticipated to enhance the longevity of the currency, reducing the frequency of replacements due to wear and tear.
The new polymer notes will incorporate advanced security features to address ongoing concerns about counterfeit currency. Ahmad assured the committee that these features are being designed to effectively combat counterfeiting, an issue that has plagued Pakistan’s currency system for years. “Advanced security features will be included in the new notes to curb counterfeiting,” he emphasized. The SBP is currently in the process of evaluating various aspects of the polymer notes, including their durability, cost-effectiveness, and long-term viability.
The announcement comes amidst ongoing discussions about the denominations and their implications. Committee member Mohsin Aziz voiced concerns regarding the Rs5,000 note, arguing that its existence contributes to corruption and suggesting that it should be discontinued. However, Ahmad responded by clarifying that there are no current proposals to phase out the Rs5,000 note. He mentioned, “Suggestions to discontinue it have been made before, but they were not accepted.” Therefore, the Rs5,000 denomination will remain part of the new currency design.
Ahmad’s statement reflects the SBP’s commitment to modernizing Pakistan’s currency while also addressing the practical concerns associated with currency management. He emphasized that law enforcement agencies will play a crucial role in preventing the misuse of the new currency notes. The governor highlighted that while the SBP is focusing on upgrading the physical aspects of currency, ensuring its proper use remains a responsibility of the broader law enforcement framework.
The transition to polymer currency notes is expected to bring several benefits. Polymer notes are more resistant to wear and tear compared to their paper counterparts, which should lead to cost savings for the SBP in the long run. Additionally, the enhanced security features of polymer notes are likely to reduce the incidence of counterfeit currency, contributing to greater public confidence in the monetary system.
As Pakistan prepares for this significant change, the introduction of polymer currency notes represents a forward-looking approach to currency management. The SBP’s careful planning and consideration of various factors—including security, durability, and cost—underscore the importance of this transition in maintaining the integrity and efficiency of the country’s financial system.
The coming months will be crucial as the SBP finalizes the design and production of the new polymer notes. With the first phase of this transition set to be presented to the cabinet for approval, stakeholders across Pakistan are closely watching the developments. The successful implementation of polymer currency notes will not only enhance the physical attributes of the nation’s money but also play a key role in strengthening the overall financial infrastructure.