Will Pakistan Replace Banknotes with Coins?

Further to the news that Pakistan’s federal government has formed a committee to investigate whether the 10 rupee banknote should be phased out in favour of its existing equivalent coin (see CN January 2026), a new currency management report has recommended that it should, noting that the shift could save the country billions.

Compiled by the State Bank of Pakistan and Pakistan Security Printing Corporation, the report highlights the financial strain caused by the short lifespan of the 10 rupee note, on average 6-9 months. In contrast, a 10 rupee coin can remain in circulation for 20-30 years.

The 10 rupee notes account for roughly 35% of all currency printed annually, making them a significant portion of Pakistan’s total currency production.

The report estimates that total annual expenditure on the notes is around Rs 8-10 billion, including printing and administrative costs.

Although coins require higher upfront production costs, the report states that their durability would eliminate the need for constant reprinting. The transition from banknote to coin could generate savings of Rs 40-50 billion over a decade.