The State Bank of Pakistan (SBP) Governor Jameel Ahmad announced on Monday that the central bank plans to roll out a new series of currency notes in the second half of 2025.
The initiative aims to replace the current notes gradually with ones featuring enhanced security measures.
Speaking to the media after unveiling the new monetary policy, the governor explained, “The central bank will seek federal cabinet approval for issuing the new banknotes in the next two to three months… (and) before June 2025.”
Once approved, the currency notes will be introduced denomination by denomination rather than all at once. However, the SBP has yet to decide which denomination will be issued first.
Currently, seven denominations of currency notes are in circulation: Rs10, Rs20, Rs50, Rs100, Rs500, Rs1,000, and Rs5,000. Jameel Ahmad clarified that the redesigned notes would not be in circulation before the start of the fiscal year 2025-26 (July 2025 – June 2026), according to Business Recorder.
SPL’s role in supporting the new banknote series
The SBP governor’s announcement seems to contrast with a recent statement from Security Papers Limited (SPL), which manufactures specialized paper for banknotes.
Last week, SPL informed the Pakistan Stock Exchange about its plans to upgrade its manufacturing plant, a process expected to take 18 months.
SPL noted that its paper machines, commissioned in 2004, require upgrades to support the new banknote series with modern security features.
“In order to meet the requirements for our key customer and to ensure business continuity, SPL would be upgrading the plant,” the company stated.
In preparation for the new series, the SBP initiated a currency design process in January 2024. It held an art competition in March 2024 to gather creative and thematic ideas for the banknotes. The winners of this competition were announced in September 2024.
Upcoming digital and investment platforms
During the press conference, Ahmad also discussed the SBP’s plans to launch the InvestPak platform, which will allow individuals and corporate entities to directly invest in government securities, including T-bills and Pakistan Investment Bonds (PIBs).
“The platform is in its testing phase these days and it would be launched soon,” he stated. Investors will be able to use the platform via a dedicated app to buy and sell sovereign debt securities in the secondary market. Currently, these investments involve a lengthy process through commercial banks.
Additionally, Ahmad highlighted that the SBP is preparing to launch a central bank digital currency (CBDC) in the future. However, the central bank is awaiting government approval for a bill that will provide the legal framework to proceed with the CBDC.