Pakistan’s central bank is set to trial a new type of banknote made from polymer plastic later this year. This move comes as part of a broader initiative to redesign all current paper banknotes to incorporate improved security features, including advanced holograms. Governor of the State Bank of Pakistan, Jameel Ahmed, revealed these plans during a Senate committee meeting on banking and finance in Islamabad.
The State Bank is exploring the potential of polymer currency, a durable and secure alternative to traditional paper notes. Polymer banknotes are known for their resistance to damage, difficulty to counterfeit, and inclusion of sophisticated security features like transparent windows and holograms. Countries such as Australia and Canada have already adopted this technology.
During the Senate Standing Committee on Finance and Revenue meeting, presided over by Senator Saleem Mandviwalla, the discussion centered around the benefits and implementation of digital and plastic currencies. An official statement noted that the central bank is working on the development of these new polymer notes, with a pilot phase set to begin based on public feedback.
Governor Ahmed confirmed that redesigned notes in denominations of Rs 10, 50, 100, 500, 1000, and 5000 are expected to be released by December. Existing paper notes will remain in circulation for up to five years before being gradually phased out.
The initial polymer notes will be issued in a single denomination as a test. If successful, the polymer currency could be expanded to other denominations. Currently, around 40 countries utilize polymer banknotes for their enhanced security benefits.
Ahmed also clarified that the central bank has no plans to withdraw the Rs 5,000 note, despite concerns about its potential misuse.
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