Pakistan to redesign currency notes of all denominations

ISLAMABAD: The central bank has submitted a proposal to the federal cabinet to issue newly designed currency notes incorporating modern security features, State Bank of Pakistan (SBP) Governor Jameel Ahmad told a parliamentary committee.

Ahmad said the SBP’s board has finalised the designs for all denominations of new banknotes and forwarded them to the federal government for approval.

“The final decision and approval for issuance now rests with the federal government,” he said during the briefing.

The governor said designs for notes of all denomination are being changed and that advanced technology will be introduced in both the design and issuance process. He added that the central bank is also considering the experimental introduction of polymer, or plastic, currency notes.

Ahmad clarified that there is no proposal under consideration to discontinue the 5,000-rupee note.

At the meeting, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial warned that any move to tamper with the 5,000-rupee note could cause volatility in the economy.

Committee Chairman Saleem Mandviwalla said the issue was settled after the central bank governor’s clarification that the note would not be withdrawn.

SMS alert charges discussed

The committee also discussed charges imposed by banks for SMS alerts related to cash withdrawals and deposits through ATMs.

Mandviwalla said consumers were being charged for SMS notifications, prompting Ahmad to explain that mandatory alerts carry no charges, while fees are applied only for additional services.

He said these charges are paid directly to telecom companies and that the central bank does not receive any portion of the fees.

Ahmad revealed that telecom SMS charges have risen sharply over the past two years, increasing from 0.04 rupees to more than four rupees per message.

Mandviwalla said the committee would summon telecom companies for further investigation to determine the scale of charges being collected.

Langrial said the expansion of technology should not come at the expense of consumers.

Other issues raised

A committee member also raised concerns over the large number of forms requiring signatures when opening bank accounts.

Separately, lawmakers questioned the possibility of conducting trade with China, Russia and other countries in currencies other than the U.S. dollar.

Ahmad said trade with China in the Chinese yuan was already underway, but declined to comment on questions related to currency rollover arrangements with the United Arab Emirates, saying it fell under the Foreign Office’s jurisdiction.