In a bid to tackle the issue of counterfeit currencies, the State Bank of Pakistan (SBP) has recently announced the introduction of new currency notes equipped with advanced international security features.
As reported by Pakistani Media, SBP governor Jameel Ahmed stated that the enhanced notes will be printed with international security features and will have new serial numbers, designs, and high-security features.
The move comes as part of cash-strapped Pakistan's efforts to address the circulation of counterfeit money, which has been influencing the country's economy, particularly the illegal use of black money facilitated by higher denomination notes.
It's also important to note that the SBP has been issuing new banknote series since 2005, starting with the 20 rupee denomination and followed by 50, 100, 500, 1000, and 5000 rupees.
The latest being the commemorative 75 rupee note in 2023, marking the 75th anniversary of Pakistan's independence.
Governor Ahmed also clarified that Pakistan's approach to currency updates differs from India's 2016 demonetisation, as it will be rolled out without causing much disruptions.
The move comes as the Pakistan's currency has fallen about 20 per cent against the US dollar recently.
“This looks like a currency that is set to adjust downwards,” said John Ashbourne, global economist at BMI in London, a Fitch Solutions company, citing Pakistan’s high inflation and trade deficit among the factors putting pressure on the rupee.
Meanwhile, Khurram Schehzad, CEO of Alpha Beta Core financial advisory firm, sees the introduction of new security features as a positive development, cautioning against premature assessments.
He stressed the need for additional measures to control or reduce the circulation of higher denomination currency notes.
Nayan Dwivedi is Staff Writer at Swarajya.
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