Wednesday April 17, 2024

SBP issues statement about issuance of polymer banknotes

In Jan, central bank announced issuing new bank notes with international security features over next 2-3 years

By Business Desk
March 16, 2024
A person can be seen holding Pakistani notes of various denominations. —AFP/File
A person can be seen holding Pakistani notes of various denominations. —AFP/File

The State Bank of Pakistan (SBP) has debunked news reports claiming that the central bank was considering issuing polymer currency notes in a deviation from its traditional paper-based banknotes.

"The SBP categorically denies news reports about issuance of polymer banknotes series," the central bank said in a statement, terming such rumours as "baseless and without substance".

Earlier this week, a controversy arose after a bank in Karachi got "misprinted" banknotes with two Rs1,000 notes having "blank" back sides.

Responding to the development, the SBP issued a clarification, saying that the risk of such faults remains due to large-scale printing and production of currency notes.

It is pertinent to know that in January earlier this year, the central bank had announced issuing new currency notes in line with the international security features.

"The new notes will be printed with an international security feature. The notes will have new serial numbers, designs, and high-security features," the SBP Governor Jameel Ahmad had said while stressing that the switchover would not be disruptive.

"Generally, it takes two to three years to launch a new banknote series, however, the SBP intends to complete the process within the next two years," the central bank said in a subsequent press release.

Meanwhile, on the issue of withdrawal of existing series of notes from circulation, the bank reassured that any decision in this regard would be taken in a gradual and phased manner, once the new banknotes are issued and are in circulation in sufficient quantities.