The State Bank of Pakistan (SBP) has announced an overhaul of the existing currency system in the country. This move comes as a response to combat individuals and entities involved in illicit financial activities within Pakistan.
The central bank aims to introduce new currency notes across all denominations, incorporating state-of-the-art International Security Features to enhance the security of legal tender and combat counterfeit currency.
Enhancing Currency Security
SBP Governor Jameel Ahmed stated that the primary motive behind this overhaul is to enhance the security of Pakistan’s currency and curb the circulation of counterfeit notes.
To achieve this, the new currency notes will be printed on advanced materials with cutting-edge security features. This initiative aims to safeguard the integrity of the currency and enhance public confidence in its authenticity.
Designing Visually Appealing Notes
To create visually appealing currency notes, SBP plans to organize a competition for their design in February. The competition will encourage artists and designers to craft notes with intricate designs, vibrant colors, and advanced security features.
The design framework for these new notes has already commenced and is expected to be completed by March.
Addressing the Issue of Fake Notes
One of the key drivers behind this currency revamp is the increasing number of complaints regarding the circulation of fake notes in Pakistan. SBP sources have highlighted that this initiative aims to combat black money within the country effectively.
By introducing technologically advanced security features, the central bank seeks to not only address the issue of counterfeit currency but also bolster the overall integrity and security of Pakistan’s currency.
Different Approach from India
Governor Jameel Ahmed emphasized that Pakistan’s approach to currency overhaul will differ from the demonetization move made by India in 2016. Unlike India’s sudden and complete demonetization, Pakistan aims to gradually introduce new currency notes with enhanced security features.
This approach ensures a smoother transition and minimizes disruptions in economic activities.
SBP’s decision to revamp the currency system in Pakistan is a significant step toward combating illicit financial activities and ensuring the security and authenticity of the nation’s legal tender.
This move aligns with the central bank’s commitment to fostering a robust and transparent financial ecosystem in Pakistan while addressing the concerns related to counterfeit currency circulation.