SBP mulls ending Rs10 note on rising costs

The State Bank of Pakistan is weighing a plan to retire the Rs10 banknote because printing costs are climbing, Dawn reported. Deputy Governor Dr Inayat Hussain made the disclosure while briefing the Senate Standing Committee on Finance and Revenue. A redesigned Rs5,000 note is also being prepared to limit counterfeit currency in circulation.

Hussain told senators the current Rs5,000 note dates back to 2005 and that technological advances have made forgery easier. A tender was floated under procurement rules, four bidders took part, and a consultant firm now holds the contract to update the design. Printing one Rs5,000 note costs around Rs14, and rolling out the new notes could require roughly a year.

On remittances, the SBP told the committee that the government had first subsidised banks handling Pakistan Remittance Initiative transfers, with Rs120 billion provided before the subsidy was curtailed last year. Because of fiscal constraints, the subsidy could not be continued under the current budget, so banks decided to absorb the costs themselves. Senator Talha Mehmood also voiced concern over companies that report losses yet allegedly use fraudulent practices to mislead shareholders.