A high-level government committee has recommended phasing out the Rs10 currency note and replacing it with a Rs10 coin, a move that could potentially save up to Rs50 billion over the next decade.
The committee, headed by the federal finance minister, submitted its currency management report to the federal cabinet under the laws governing the State Bank of Pakistan and the Security Printing Corporation of Pakistan.
According to the report, the average lifespan of a Rs10 banknote ranges between six and nine months due to frequent handling and wear and tear. Once damaged, these notes must be withdrawn and replaced, adding to recurring printing and operational costs.
In comparison, a Rs10 coin can remain in circulation for 20 to 30 years, significantly reducing replacement frequency and long-term expenses.
The findings revealed that approximately 35 percent of all banknotes printed annually in Pakistan are Rs10 notes, placing a considerable burden on printing and distribution systems. The annual cost of printing, replacing, and managing these notes is estimated between Rs8 billion and Rs10 billion.
The report estimates that replacing the Rs10 note with a coin could generate cumulative savings of Rs40 to Rs50 billion over a 10-year period. Although the initial minting cost of coins is higher, their extended circulation life makes them more economical over time.
The federal cabinet is expected to review the committee’s recommendations before making a final decision regarding the future of the Rs10 banknote.
