Cabinet approves replacing Rs10 banknote with coin, withdrawal date yet to be announced

• The federal cabinet has approved replacing the Rs10 banknote with a coin on the Finance Ministry’s recommendation.
• Designs for a new banknote series have also been approved, with improved security features and more durable materials.
• No date has been announced for withdrawing existing Rs10 notes or exchanging them.

The federal cabinet has approved replacing Pakistan’s Rs10 banknote with a coin of the same value, following a recommendation from the Ministry of Finance. The announcement does not specify when existing notes will cease to be legal tender or set a deadline for their exchange.

The decision was taken during a cabinet meeting that also approved designs for a new series of currency notes.

According to a statement from the Prime Minister’s Office, the cabinet received a detailed briefing on the proposed designs, which were developed after inviting suggestions from artists and designers across Pakistan.

A committee formed by the prime minister also consulted relevant stakeholders extensively before the designs were submitted for approval.

The cabinet was informed that the new banknotes would include enhanced security features to help prevent counterfeiting. Modern materials would also be used to improve their durability and extend their lifespan.

The approval follows the State Bank of Pakistan’s rejection in September of social media claims that the Rs10 note was being discontinued and that holders had been given a deadline to exchange it.

At the time, the central bank described those reports as baseless. It said a proposal for a new banknote series was before the federal cabinet, but no decision had been made to replace or discontinue any denomination.

The SBP also said any withdrawal of banknotes would be formally announced, with sufficient time allowed for the public to exchange the affected currency.

Earlier, SBP Deputy Governor Dr Inayat Hussain told the Senate Standing Committee on Finance that rising production costs had prompted consideration of discontinuing the Rs10 banknote. He also informed the committee that the central bank had made two previous attempts to discontinue the denomination.

The latest announcement gives no withdrawal schedule or exchange procedure for Rs10 notes. Those details remain to be formally communicated.