ISLAMABAD – Pakistan is preparing for major overhaul of its currency system after the federal cabinet approved new designs for banknotes and decided to replace the Rs10 paper note with a coin to cut printing costs, strengthening security and improving the durability of money in circulation.
The decision, taken on Wednesday on recommendation of Ministry of Finance, marks development in the government’s long-running efforts to modernise Pakistani currency and introduce more secure banknotes.
Under new plan, the familiar Rs10 paper note will eventually be phased out in favour of a coin, while redesigned currency notes featuring advanced anti-counterfeiting technology will be introduced after the necessary formalities are completed. Authorities have yet to announce when the new notes will enter circulation or when the existing Rs10 banknote will be withdrawn.
During the cabinet meeting, officials presented a comprehensive briefing on the proposed banknote designs, highlighting their security features, quality and expected durability. The government had invited proposals from artists and designers across Pakistan to develop a fresh appearance for the country’s currency.
A special committee established by the prime minister reviewed the submissions, consulted relevant stakeholders and examined different design options before forwarding its recommendations for approval. The initiative is intended not only to strengthen security but also to give Pakistani currency a modern appearance reflecting the country’s national identity, history and cultural heritage.
Earlier proposals considered incorporating Pakistan’s geographical diversity, historic monuments, contributions of women and environmental themes into the redesigned banknotes.
Rs10 Paper Note to End
One of key decisions involves future of the Rs10 banknote, which has been widely used in everyday transactions for decades.
The government decided to move towards replacing the paper denomination with a coin because of the substantial costs associated with repeatedly printing low-value banknotes. Unlike coins, which can remain usable for decades, Rs10 paper notes deteriorate relatively quickly because of frequent handling.
Previous assessments have indicated that these notes typically last between six and nine months, creating a continuous need for replacement. With Rs10 notes accounting for a considerable share of annual currency printing, shifting to coins could help reduce recurring production expenses over the longer term.
Pakistan already has Rs10 coin in circulation, but the latest decision signals a broader transition away from the paper version of the denomination.
The redesigned banknotes are expected to carry improved security elements to help authorities combat counterfeit currency. The proposed features are intended to make fraudulent reproduction more difficult while enabling banks, businesses and ordinary citizens to distinguish genuine notes from forged ones.
The government also plans to introduce higher-quality materials to increase banknote durability and minimise damage caused by regular use. Officials have not yet disclosed the final security specifications or confirmed whether the new banknotes will be manufactured using conventional currency paper, polymer or another specialised material.
The currency redesign project has been under consideration since the beginning of 2026. In January, the federal cabinet examined preliminary proposals involving several denominations, particularly Rs100, Rs500, Rs1,000 and Rs5,000 banknotes.
Those proposals underwent further scrutiny, with authorities seeking additional technical input and revisions before moving towards final approval.
Although the latest cabinet decision clears the way for redesigned currency, the government has not yet publicly confirmed the complete list of denominations covered by the approval.
The final appearance of the banknotes and the denominations selected for the initial rollout remain subject to official announcements.
Despite the cabinet’s decision, the existing Rs10 banknote remains legal tender and can continue to be used across Pakistan. There has been no announcement requiring people to stop accepting Rs10 notes or immediately exchange them for coins.
State Bank of Pakistan had previously rejected speculation about an imminent withdrawal of the denomination and clarified that any such transition would be formally communicated to the public. Authorities are expected to provide appropriate notice and explain exchange arrangements before implementing a withdrawal.
When Will New Currency Notes Be Issued in Pakistan?
Although the federal cabinet has reportedly approved the designs, the State Bank has not announced a confirmed date for their issuance.
The introduction of new currency involves several stages, including regulatory approvals, production arrangements, security verification and nationwide distribution.
Under the applicable legal framework, the State Bank’s relevant procedures and recommendations also play a role in determining the design, form and material of currency notes. The central bank had previously clarified that approval of proposals should not be confused with an immediate launch.
Consequently, the cabinet’s decision does not establish a date for the withdrawal of existing denominations or the availability of newly designed notes.
Apart from the currency overhaul, the cabinet reportedly took several other important decisions during Wednesday’s meeting. The cabinet also approved transferring certain powers of the provincial chief minister to the governor during the emergency period.
The arrangement also includes a requirement for monthly reports to the federal government to review the situation and administrative performance.
Designs of new Pakistani currency notes finalised: What’s next for old banknotes?
