New Banknotes: A Game Changer for Pakistan’s Economy?

The introduction of a new series of banknotes in Pakistan next year, enhanced with advanced security features and modern designs, has the potential to play a transformative role in the country’s economic landscape. Pakistan is a predominantly cash driven economy and banknotes play an important role due to the country’s lower literacy rate, cultural boundaries, customs and traditions.

The introduction of new paper banknotes is a normal feature of the State Bank of Pakistan (SBP) every 10 years, with the current series first introduced in 2016 and so due for replacement in 2026. The new series will include updated denominations, enhanced security features, and a shift towards polymer.

New denomination and designs

A new high denomination 10,000 rupee note is set to be introduced.

Redesigned versions of the existing banknotes – in denominations of 10, 50, 100, 500, 1,000, and 5,000 rupees – are scheduled for introduction in December 2024 although this may stretch next year. The currently circulating older notes will remain in circulation simultaneously for five years before being phased out.