Rs10 note expected to be discontinued under currency reform plan

A high-level government committee has submitted a currency management report to the federal cabinet regarding the possible discontinuation of the Rs10 banknote.

The committee, headed by the finance minister, reviewed the matter under the relevant laws governing the State Bank of Pakistan and the Security Printing Corporation of Pakistan.

According to the report, the average lifespan of a Rs10 banknote ranges between six to nine months, while a Rs10 coin remains in circulation for approximately 20 to 30 years.

The findings state that around 35 per cent of the total currency notes printed annually in the country consist of Rs10 denominations, making it one of the most frequently produced notes.

The committee has recommended introducing a Rs10 coin in place of the note, arguing that the move could generate significant savings over time. The report estimates that replacing the note with a coin could save between Rs40 billion and Rs50 billion over a period of 10 years.

It further notes that the annual cost of printing, replacing and managing Rs10 notes is estimated at Rs8 billion to Rs10 billion.

While the initial production cost of coins is higher compared to notes, coins have a much longer circulation life and do not require frequent replacement.

The cabinet is expected to review the recommendations before making a final decision on the future of the Rs10 banknote