KARACHI – State Bank of Pakistan (SBP) strongly refuted the reports regarding replacing the paper currency with polymer (plastic) banknotes.
Calling the reports baseless and without substance, SBP said: “There is no such plan or suggestion currently under consideration regarding change in the substrate of banknotes from paper to the polymer”.
It added that SBP uses cotton based paper substrate which is manufactured locally by the Security Papers Limited, using primarily local raw materials.
A day earlier, reports claimed that the central bank had planned to introduce plastic currency notes in the country to curb flow of fake banknotes in the market.
The central bank, according to reports, would brief the international Monetary Fund’s (IMF) team, which is in Pakistan for talks on next installment of the $3.3 billion bailout package, on its plan to replace currency notes.
Back in 2021, rumours had also surfaced that the government was going to replace the paper currency with the plastic notes.
However, the central bank at this time had rubbished the rumours, stating: “Some fake news regarding new designs of currency notes is circulating on social media”.
“SBP categorically denies the news and clarifies that no such proposal is under consideration at the moment,” it had said in a social media post..
The central bank had last redesigned Rs500 currency note in January 2010. Prior to that, the new design of Rs1,000 note was introduced in February 2007 and the new Rs5,000 note in May 2006.
