SBP to roll out new banknotes of all denominations in two years

KARACHI: The State Bank of Pakistan (SBP) said on Tuesday it has initiated the process of designing and issuing a new banknotes series of all existing denominations, a move that analysts view would help fight counterfeit currency and encourage the documentation of the economy.

“It is an established practice of central banks to introduce new banknote series after every fifteen to twenty years to secure the integrity of banknotes and align them with the latest technological developments in the banknotes design and security features,” the SBP said in a statement.

“The existing banknote series will remain in circulation even after the issuance of new series. Any decision on withdrawal of the existing series from circulation will be taken in a gradual and phased manner, once the new banknotes are issued and are in circulation in sufficient quantities.”

The SBP announced that as part of the initial process of designing the new banknote series, it is organising an art competition to have innovative and thematic design ideas for the new banknote series.

The local artists, designers and art students can send their designs to SBP by March 11.

The top three designs for each of the existing seven denominations will be recognised and awarded cash prizes.

The design ideas and themes finalized after the art competition will be shared with the reputed professional banknote designers to be selected through a competitive process for developing the final printable designs for each denomination, according to the SBP.

The final designs will be submitted to the federal government for approval. The process of issuance of new banknote series involves a number of steps and stages and thus requires meticulous planning and coordination amongst multiple stakeholders, the SBP said.

“Generally, it takes 2 to 3 years to launch a new banknote series, however, the SBP intends to complete the process within the next 2 years.”

According to analysts, the issuance of new banknotes would enhance individual asset declarations and help in the fight against counterfeit currency. This is a constructive move that will increase tax revenue collection, broaden the tax base, and promote documentation of the economy.

In Pakistan, the notes with denominations of 10, 20, 50, 75, 100, 500, 1,000, and 5,000 rupees are currently accepted as legal tender.