Pakistan to experiment with new currency notes made of polymer plastic

Pakistan’s central bank will experiment with a new polymer plastic banknote later this year, while redesigning all existing banknotes to improve security and hologram characteristics. State Bank of Pakistan Governor Jameel Ahmed told a Senate committee on banking and finance in Islamabad that all existing paper notes are being redesigned with new ones. Safety features by December of this year.

Ahmed said the newly redesigned banknotes in denominations of 10, 50, 100, 500, 1,000 and 5,000 rupees will be issued in December.

“The old banknotes would remain in circulation for five years until the central bank withdraws them from the market,” said a source close to the committee.

The State Bank Governor also informed the Senate committee members that a new polymer plastic banknote in one denomination will be issued to the public and if well received, plastic currency in other denominations will follow.

Currently, around 40 countries use it. Polymeric plastic banknotes which are difficult to counterfeit and have enhanced security features such as a hologram and transparent window.

Australia was the first country to introduce polymer banknotes in 1998. Ahmed also confirmed that the central bank had no plans to scrap the 5,000 rupee note, although one of its members, Mohsin Aziz, insisted it made it easier for corrupt people to do business.