The State Bank of Pakistan (SBP) has confirmed that the design process for new currency notes has been completed and the proposals have been sent to the federal cabinet for approval, according to Governor Jameel Ahmad.
He shared the update during a meeting with members of the Karachi Chamber of Commerce and Industry (KCCI), where he also addressed concerns about delays in the introduction of new banknotes. The governor said the central bank had finalised the designs, marking a major step towards replacing existing currency in circulation.
The SBP had launched the process in January 2024 by inviting the public to submit design ideas. The aim is to introduce updated notes with improved security features to help reduce counterfeiting. The central bank has also said that redesigning currency every 15 to 20 years is a standard global practice to strengthen financial security.
On broader economic matters, Jameel Ahmad said exchange rates in Pakistan are determined by market forces and not directly set by the SBP. He also confirmed that work is underway on a regulatory framework for virtual assets.
He cautioned that inflation may rise temporarily, possibly crossing seven percent in the last quarter of the current fiscal year. However, he said the SBP remains committed to keeping inflation within its medium-term target range of five to seven percent.
The governor said Pakistan’s external account has shown improvement, with the current account remaining in surplus during the first nine months of FY26. He added that the overall deficit is expected to stay between zero and one percent, reflecting a stronger external position.
He also highlighted that SBP reforms and strict action against informal money transfer systems have helped stabilise reserves. Remittances reached $38 billion last year and are expected to exceed $41 billion this fiscal year.
On financial monitoring, he said banks are required to report suspicious transactions to law enforcement agencies under strict regulations. He also noted strong growth in small and medium enterprise financing, which rose from Rs491 billion in June 2024 to Rs882 billion by December 2025, with a target of Rs1.5 trillion by 2028.
The governor added that exports have been affected by global conditions, with earnings expected at around $30 billion this year compared to $32 billion last year.
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