The State Bank of Pakistan (SBP) is considering withdrawing the Rs. 10 banknote when Pakistan introduces its next series of currency notes.

SBP Deputy Governor Dr. Inayat Hussain told the Senate Standing Committee on Finance on Tuesday that the central bank had already considered discontinuing the denomination twice. He said the rising cost of producing Rs. 10 notes was one reason for reconsidering it.

“The Rs. 10 note will be discontinued when the new currency notes are introduced,” Dr. Hussain told the committee.

The Senate panel, chaired by Senator Saleem Mandviwalla, was briefed on the government’s plans for new banknotes featuring upgraded security measures.

The SBP said the existing currency series has been in production since 2005. The proposed replacement notes have already been discussed by the federal cabinet twice, while a cabinet committee is reviewing their designs.

The designs have been revised following the cabinet’s recommendations, and the new notes will only be issued after the changes are incorporated.

The process of designing the new currency also came under criticism during the meeting.

Mandviwalla questioned why competitive bidding was not conducted for the design work and alleged that a company linked to the SBP’s consultant had also been selected for the assignment.

An SBP Executive Director confirmed that the same company would carry out the work. Mandviwalla said the SBP’s autonomy did not exempt it from following applicable rules and procedures.

The committee also discussed concerns over counterfeit currency.

Mandviwalla claimed that fake notes were being dispensed through banks and ATMs and said concerns over counterfeit Rs. 1,000 and Rs. 5,000 notes had made some shopkeepers reluctant to accept them.

The SBP deputy governor disagreed with the assessment, saying counterfeit currency circulation in Pakistan was low. He offered to submit official data to the committee, which Mandviwalla requested.

The chairman also said the SBP had retained three notes he had submitted for examination around two years ago. He said one was found to be counterfeit and two genuine, but none had been returned.

“Two years have passed and the State Bank still owes me Rs. 15,000,” Mandviwalla said.

The SBP said the new currency designs were also being reviewed for public acceptability. Senators questioned whether public preference should play a significant role in determining the appearance of banknotes.

Dr. Hussain said a federal cabinet subcommittee is currently examining the proposed designs. He added that the SBP had sent the designs to the Ministry of Finance about a year ago but was still waiting for a response.

Mandviwalla confirmed the delay and questioned why the ministry had not responded for nearly a year.

The new banknotes cannot be issued until the ongoing review and design changes are completed.