Pakistan’s federal cabinet is considering a proposal to gradually replace the Rs10 banknote with a coin.
This move may save billions of rupees over the next decade.
The proposal follows a currency management report prepared by the State Bank of Pakistan (SBP) and the Pakistan Security Printing Corporation (PSPC).
The findings were presented to the cabinet by a high-level committee led by the finance minister.
Report of SBP, PSPC
According to the report made by the SBP and PSPC, a 10-rupee note remains in circulation for only six to nine months on average. By contrast, a 10-rupee coin can last between 20 and 30 years.
Officials say around 35% of all banknotes printed each year are in the 10-rupee denomination.
The combined cost of printing, replacing, and managing these notes is estimated at Rs8bn to Rs10bn annually.
The report suggests that switching to coins could save between Rs40bn and Rs50bn over a 10-year period.
Gradual phase-out planned
Although coins are more expensive to produce at first, they do not need to be replaced as often. This makes them more cost-effective over time, officials say.
If approved, the central bank is expected to phase out the printing of 10-rupee notes over the next three years. The process would be carried out under the legal framework of the State Bank Act.
Ten-rupee coins were first introduced nationwide in October 2016. The proposed shift would expand their use and gradually reduce reliance on paper notes.
Several countries, including the UK, Canada, and Australia, have already replaced low-denomination notes with coins.
Authorities also say reducing the number of paper notes in circulation supports environmental goals, as fewer notes need to be printed and replaced.
The cabinet has not yet made a final decision. Officials say discussions are ongoing, and further details will be shared once a formal approval is granted.
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