The federal government is considering a major change to Pakistan’s currency system by gradually replacing the Rs. 10 banknote with a coin — a move aimed at cutting costs and boosting efficiency.
A high-level committee led by the finance minister presented a detailed currency management report prepared by the State Bank of Pakistan and the Pakistan Security Printing Corporation to the federal cabinet for review.
The report highlights that a Rs. 10 note typically remains usable for only six to nine months before wear and tear forces it out of circulation. In contrast, a metal coin of the same denomination can last 20 to 30 years, significantly reducing the need for repeated printing.
Currently, about 35 % of all notes printed each year are Rs. 10 notes, costing roughly Rs. 8–10 billion annually in printing and handling. Experts say switching to coins could save the government Rs. 40–50 billion over the next decade due to lower replacement and administrative costs.
Although producing coins initially costs more, their longevity makes them more economical in the long run. The report suggests phasing out the Rs. 10 note over the next three years, following legal procedures under the State Bank Act.
Several other countries, including the United Kingdom, Canada, and Australia, have already switched low-value notes to coins to improve cost efficiency.