The federal cabinet is weighing in-principle approval to replace the ten-rupee note with a coin in a move aimed at saving billions of rupees over the coming decade.
The proposal follows a currency management report prepared by the State Bank of Pakistan and the Pakistan Security Printing Corporation. The findings were presented to the cabinet by a high-level committee headed by the finance minister.
According to the report, a ten-rupee note typically remains in circulation for only six to nine months, whereas a ten-rupee coin can last between 20 and 30 years. At present, ten-rupee notes make up about 35 percent of the total notes printed each year.
The combined cost of printing, replacing and managing these notes is estimated at Rs8 to Rs10 billion annually. Shifting to coins could generate savings of Rs40 to Rs50 billion over 10 years.
Although minting coins involves a higher upfront expense, their long lifespan makes them more economical over time. The central bank is likely to gradually stop printing ten-rupee notes within the next three years.
Ten-rupee coins were first introduced across the country on October 24, 2016. Any gradual replacement of notes with coins will be carried out in line with legal requirements under the State Bank Act.
Several countries including the United Kingdom, Canada and Australia have already replaced low-denomination notes with coins. Officials also noted that cutting down on paper currency aligns with efforts to promote environmentally responsible banking practices.