Pakistan will have new notes made of polymer plastic, central bank governor tells Senate committee

The Central Bank of Pakistan will introduce a new polymer plastic currency banknote later this year. The central bank will also redesign all existing banknotes for better security and hologram features.

State Bank of Pakistan Governor Jamil Ahmed told the Senate Committee on Banking and Finance in Islamabad that all existing paper currency notes are being redesigned with new security features by December this year.

Ahmed said that newly designed bank notes in denominations of Rs 10, 50, 100, 500, 1000 and 5000 will be issued in December. "The old notes will remain in circulation for five years and the central bank will withdraw them from the market," a source said.

State Bank governor informed the Senate committee that one denomination plastic bank note would be issued for circulation among the general public, and in case of its popularity, the plastic currency would be issued in other denominations as well.

Currently, some 40 countries have adopted polymer plastic bank notes because they are hard to counterfeit and are designed with advanced security features like holograms and transparent windows. Australia was the first to adopt polymer banknotes back in the year 1998.

Ahmed also confirmed that the central bank had no idea whatsoever of discharging or discontinuing the Rs 5,000 note. A member, Mohsin Aziz, however, insisted that it would make it easier for corrupt people to carry on their business.