Pakistan is set to embrace a new era in currency with the introduction of polymer plastic banknotes. The State Bank of Pakistan (SBP) announced plans to experiment with a polymer banknote in a single denomination later this year. This move comes as part of a larger initiative to revamp all existing banknotes with enhanced security features and holograms.
The SBP Governor, Jameel Ahmed, revealed that all current paper currency notes, in denominations ranging from Rs 10 to Rs 5,000, will be redesigned by December 2023. The redesigned notes will incorporate advanced security features, including holograms, making them more difficult to counterfeit. The old banknotes will remain in circulation for a period of five years before being gradually phased out.
The SBP’s decision to introduce polymer banknotes is driven by their proven durability and resistance to counterfeiting. Over 40 countries have already adopted polymer banknotes, with Australia being the pioneer, introducing them in 1998. These banknotes are known for their superior security features, including holograms and see-through windows, which contribute to their authenticity and deter counterfeiting attempts.
The success of the pilot polymer banknote in Pakistan will determine its future. If well-received by the public, the SBP plans to introduce polymer banknotes in other denominations as well. This move is anticipated to strengthen the integrity of Pakistan’s currency system and combat counterfeiting activities.
