Government Considers Discontinuation of Rs. 10 Banknote
The federal government is reviewing the future of the Rs. 10 banknote, as the federal cabinet has constituted a high-level committee to examine whether the currency note should be discontinued or retained. The move has sparked public interest, given the widespread daily use of the Rs. 10 note across Pakistan.
According to sources familiar with the decision, the committee is headed by the Federal Minister for Finance and has been tasked with submitting formal recommendations to the cabinet. The review will assess the practicality, cost, and economic impact of continuing circulation of the Rs. 10 banknote.
Officials indicate that the review is part of a broader effort to streamline Pakistan’s currency management system. One of the key concerns is the high cost of printing low-denomination banknotes, which often have a shorter lifespan due to frequent use. The State Bank of Pakistan reportedly incurs significant expenses replacing worn-out notes each year.
Another factor under consideration is the growing reliance on coins and digital payment methods. Policymakers are evaluating whether replacing the Rs. 10 note with a coin could prove more durable and cost-effective in the long run. Similar steps have been taken in the past, including the gradual reduction of lower-value notes in favor of coins.
Sources say the committee will also examine public convenience, inflationary trends, and the availability of alternative payment options. The Rs. 10 denomination remains important for small transactions, public transport, and daily retail purchases, especially in areas where digital payments are limited.
The cabinet has instructed the committee to present a balanced recommendation, weighing economic efficiency against public usage habits. Any final decision will require cabinet approval and coordination with the State Bank of Pakistan to manage a smooth transition if changes are implemented.
Experts note that discontinuing a banknote does not mean its immediate invalidation. If approved, the process would likely involve a phased withdrawal, allowing sufficient time for the public to exchange or use existing notes without disruption.
The government has not announced a timeline for the committee’s findings. However, officials emphasize that no final decision has been made, and the review remains at an exploratory stage.
As discussions continue, the possibility of discontinuing the Rs. 10 note highlights ongoing efforts to modernize Pakistan’s financial system while balancing fiscal responsibility and public convenience.
