Pakistan Set to Introduce New Currency Notes and Explore Digital Currency
A Pakistani dealer counts US dollars at a currency exchange shop in Islamabad on October 9, 2018. - The International Monetary Fund said October 9 Pakistan has not approached the body to begin negotiations for a possible bailout to stem a balance of payments crisis, hours after Islamabad announced it will enter talks. (Photo by AAMIR QURESHI / AFP) (Photo credit should read AAMIR QURESHI/AFP/Getty Images)
KARACHI: The State Bank of Pakistan (SBP) Governor, Jamil Ahmed, has announced plans to launch new currency notes this year, with the rollout taking place in phases. Speaking to the media on Monday, Ahmed shared that the designs for the new notes are currently undergoing technical evaluation and will soon be presented to the federal cabinet for approval.
“The first redesigned currency note will be issued in 2025, but the process will be gradual, covering various denominations over time,” he said. While the exact denomination of the initial release remains undecided, the governor assured that the transition will be carefully managed to ensure a seamless introduction.
Digital Currency in Development
Alongside the physical currency redesign, the SBP is making progress on plans to introduce digital currency in Pakistan. Over the past two years, the central bank has collaborated with international agencies and other central banks to enhance its technological and regulatory readiness.
Jamil Ahmed highlighted that launching digital currency would require amendments to the State Bank Act, with a draft amendment bill already under government review. Once the legal framework is finalized, the SBP will present a detailed roadmap for implementing digital currency in the country.
Policy Rate Reduced Amid Economic Improvement
In another development, the SBP announced a one-percentage-point reduction in the policy rate, bringing it down from 13% to 12%. The decision, approved during the Monetary Policy Committee’s latest meeting, was driven by improved economic indicators, including a consistent current account surplus and a notable drop in inflation.
“The six-month streak of current account surpluses and significant inflation decline have created favorable conditions for this rate cut,” Ahmed stated during the press briefing.
