Pakistan is preparing for a major update to its currency, with the federal government planning to redesign all banknotes from Rs10 to Rs5,000. The move is aimed at improving security, durability, and overall note quality—without disrupting daily cash use.
The most important point for the public is clear: existing currency notes will remain valid. There is no plan to cancel or demonetize old notes.
What’s Changing in Pakistan’s Currency
Under the proposed plan, all denominations will be issued with new designs and upgraded security features. These changes are intended to reduce counterfeiting and modernize the look and feel of Pakistani banknotes.
In addition, the government plans to introduce one denomination as a plastic polymer note alongside traditional paper notes. This polymer note will be tested for durability, as plastic notes tend to last longer and withstand wear better than paper currency.
Will Old Notes Still Work?
Yes. People will continue to use their existing cash without any issue. The transition will be gradual, with banks exchanging old notes for new ones over time once the redesigned series is introduced.
Authorities are expected to issue a clear schedule to banks so the process remains smooth and avoids confusion for businesses and the general public.
Why the Redesign Is Needed
Pakistan currently has over Rs10 trillion worth of cash in circulation, much of it subject to heavy daily use. Over time, worn-out notes increase handling costs and security risks.
By upgrading designs and security features, the government aims to:
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Reduce fake currency circulation
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Improve note lifespan
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Lower long-term printing and replacement costs
If the polymer note performs well, it could be expanded to other denominations in the future.
Approval and Rollout Timeline
Formal approval from the federal cabinet is expected before the new currency series is officially launched. Once approved, the redesigned notes are likely to be rolled out within the year, in phases, to ensure uninterrupted cash flow in markets.
What You Should Know Right Now
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No currency note is being banned
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No urgent exchange is required
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Daily transactions will continue as normal
FAQ
Do I need to exchange my cash immediately?
No. Old and new notes will circulate together during the transition.
Is this similar to demonetization?
No. This is a redesign, not a withdrawal of legal tender.
For now, the message is simple: your money remains safe and usable, while Pakistan moves toward a more secure and modern currency system.
This article is published for informational and educational purposes only. nise.org.pk is not an official government website and is not affiliated with any government department. Readers are advised to verify all information from official sources before taking any action.
