New currency notes to enter circulation in 2025, confirms SBP governor

State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Monday the central bank would issue the first new currency note in the second half of 2025, replacing all the existing notes one by one – an initiative aimed at bringing new banknotes with improved security features.

The central bank is set to secure the federal cabinet’s approval for issuance of the new banknotes “maximum in the next two to three months…(and) before June 2025”, Jameel Ahmad said while talking to the media after addressing a press conference on the new monetary policy.

The currency notes of all existing denominations would be issued one by one instead in one go, according to the SBP chief.

He, however, did not disclose which domination note would be in circulation first. “It has yet to be decided.”

At present, there are seven currency notes in circulation in Pakistan of the dominations of Rs10, Rs20, Rs50, Rs100, Rs500, Rs1,000, and Rs5,000.

Jameel Ahmad made it clear that new-designed currency notes would not be in circulation before the start of the new fiscal year (July 2025 - June 2026).

SBP governor’s announcement on the new notes is seemingly in contradiction to a recent statement from the Security Papers Limited’s (SPL), the company engaged in manufacturing and sale of specialised paper for banknote and non-bank note security documents.

In a notice to the Pakistan Stock Exchange last week, the SPL announced plans to upgrade its plant, which is expected to be completed within 18 months.

SPL shared that its paper manufacturing machines were commissioned in the year 2004 and to support the new banknote series there is an immediate need to upgrade the said machine to accommodate such security features, which are already being used internationally.

“Therefore, in order to meet the requirements for our key customer and to ensure business continuity, SPL would be upgrading the plant,” the SPC stated in the notice.

In September 2024, the SBP announced the winners of its competition for the designs of the new banknote series. The central bank had initiated the process for designing and issuing of new banknotes series of all existing denominations in January, 2024. It announced an art competition in March 2024 to have innovative and thematic design ideas for the series of new currency notes.

InvestPak soon, digital currency in future

Meanwhile, Ahmad said at the press conference that the central bank was all set to launch InvestPak platform to enable individual and corporate investors to directly invest in the government debt securities including T-bills and Pakistan Investment Bonds (PIBs).

“The platform is in testing phase these days and it would be launched soon,” he said.

The investors could invest through the platform after downloading and installing its app. Later on, they could sell the sovereign debt securities in the secondary market.

At present, individual and corporate investors invest in T-bills and PIBs through commercial banks following a cumbersome process.

Responding to a question, Ahmad said the SBP was building its capability to launch its own central bank digital currency (CBDC) in future.

The central bank is waiting for approval of a bill lying the government to have legal basis to advance work on CBDC, according to the SBP governor.