Pakistan to soon roll out new currency notes with advanced security features: Report

Islamabad, Pakistan

The State Bank of Pakistan (SBP) has announced its plans to introduce new currency notes embedded with enhanced international security features. The central bank's governor Jameel Ahmad said that the upcoming notes would showcase new serial numbers, designs, and advanced security elements.

This comes as inadequate policy decisions, coupled with a sequence of setbacks such as the impact of COVID-19, the devastating floods in 2022, and unfavorable global circumstances, have led to a deceleration in Pakistan's economic growth. The country has seen a rise in poverty while human development indicators persist at levels comparable to much less affluent nations, and per capita income growth has been diminishing. 

SBP governor also provided insight into the timeline, mentioning that the design framework for the new notes had already commenced, with an expectation to finalise it by March. “I hope that their design framework will be finalised by March," he said. 

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Reports citing sources familiar with the matter disclosed that the central bank's decision stems from concerns about counterfeit currency notes circulating in the country. Financial expert Khurram Schehzad, CEO of Alpha Beta Core, cautiously appraised the SBP's move as a "positive development" but also said that it is early to say how the decision proves out to be.

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He further dismissed the idea that the introduction of new notes alone would tackle the issue of black money. Schehzad emphasised the necessity to concurrently address the large circulation of higher denomination currency notes.

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Schehzad stressed the importance of assessing the extent of cash hoarded by the public, noting that, in times of heightened inflation, people tend to convert cash into assets such as property, cars, gold, or foreign currencies. "It is to be seen how the central bank moves forward, whether it's discontinuing the higher denomination currency notes, or is simply introducing new ones," he said.

Schehzad highlighted the need for the SBP to control the printing of currency notes, identifying it as an important factor contributing to rising inflation.

(With inputs from agencies)