Pakistan, which is currently grappling with an economic crisis, has made a significant decision regarding its currency. The country plans to replace its paper banknotes with polymer plastic notes, a move that mirrors India's demonetization but will be implemented differently. This decision has been announced in advance to give the public ample time to prepare for the transition.
New plastic notes to replace paper currency Governor Jameel Ahmed of the State Bank of Pakistan announced that all paper currency in circulation will be replaced with polymer plastic notes by December. The primary goal of this initiative is to combat the issue of counterfeit currency. These plastic notes, which are known for being difficult to replicate, will provide enhanced security and longevity compared to traditional paper notes.
Redesigned with advanced security features Jameel Ahmed explained to a Senate committee that the new plastic notes will be completely redesigned and will include advanced security features, such as holograms. The new notes will be issued in denominations of Rs 10, 50, 100, 500, 1000, and 5000. Importantly, the transition will be gradual.
The old paper notes will remain in circulation for up to five years before being slowly phased out, giving people time to adjust to the new currency. Learning from global practices Pakistan is following in the footsteps of 40 other countries that currently use polymer plastic banknotes. Australia was the first country to introduce such n.