Pakistan is embarking on a significant overhaul of its national currency, the Rupee, with the State Bank of Pakistan (SBP) set to introduce a new series of banknotes featuring enhanced security features and updated designs. This initiative, part of a global practice among central banks to refresh currency every 15 to 20 years, aims to combat counterfeiting, improve durability, and align Pakistan’s banknotes with the latest international technological advancements.
Timeline and Phased Rollout: The SBP initiated the process for designing and issuing new banknotes across all existing denominations in January 2024. SBP Governor Jameel Ahmad confirmed in late January 2025 that the first new currency note would be issued in the second half of 2025, specifically not before the start of the new fiscal year (July 2025 – June 2026). The central bank plans a gradual, phased rollout, replacing existing notes one by one rather than all at once. The specific denomination to be released first is yet to be decided. Currently, Pakistan has seven denominations in circulation: Rs10, Rs20, Rs50, Rs100, Rs500, Rs1,000, and Rs5,000.
Focus on Advanced Security Features: A primary driver behind the new series is the urgent need to enhance the security of Pakistan’s banknotes to counter the persistent threat of counterfeit currency and ensure the integrity of the financial system. The new notes are expected to incorporate state-of-the-art international security features, making them significantly more difficult to replicate or forge.
To support this, Pakistan’s Security Papers Limited (SPL), which manufactures security paper for banknotes, has embarked on a major upgrade of its production capabilities. In March 2025, SPL awarded an international tender worth Euro 8.297 million (approximately Rs3.4 billion) to the German firm Giesecke+Devrient (G+D). This upgrade, expected to be completed within 18 months, is crucial for incorporating advanced security features that meet global standards.
Imran Qureshi, CEO of SPL, stated that the upgrade is “vital to fulfilling the SBP’s requirements for the new banknote series,” ensuring Pakistan’s currency remains secure and resistant to counterfeiting. Claudio Sgarlata, Managing Director Middle East and Africa for G+D, expressed confidence that their expertise would help establish SPL “as a leader in the global currency security paper market.”
Design and Themes: In a bid to gather innovative and thematic design ideas, the SBP launched an art competition in March 2024. By September 2024, the SBP announced the winners of this competition for each denomination. These shortlisted designs are “suggestive in nature” and will serve as inspiration for international designers who have been shortlisted to develop the final printable designs. The SBP aims to ensure the new series “reflects the rich cultural heritage and progressive vision of our nation.” While the exact final designs are yet to be revealed, the collaborative effort between local artists and international banknote designers is expected to result in aesthetically appealing and culturally resonant currency.
Potential Introduction of Polymer Notes: There are indications that the new series might include a polymer banknote for one of the denominations. SBP Governor Jameel Ahmad, in August 2024, mentioned plans to issue a polymer note to test its durability and security features in Pakistan’s climatic conditions. This would be a significant shift from the current cotton-based paper substrate, which is manufactured locally by SPL.
Purpose and Impact: The introduction of a new banknote series serves several key purposes:
- Combating Counterfeiting: Enhanced security features are paramount to curb the circulation of fake currency, which undermines public trust and economic stability.
- Modernization: Aligning with international best practices and technological advancements in banknote design.
- Durability: Potentially improving the lifespan of notes, especially lower denominations that experience high circulation.
- Public Confidence: Bolstering trust in Pakistan’s monetary system among businesses and citizens.
The SBP has assured that the transition will be smooth, with existing banknotes remaining legal tender even after the new series is introduced. Any decision to withdraw the old series will be gradual and phased, ensuring minimal disruption to public and commercial activities. The central bank also plans to launch a public awareness campaign to educate citizens about the features of the new banknotes.
This comprehensive modernization effort by the State Bank of Pakistan marks a significant step towards securing the nation’s financial transactions and enhancing the integrity and visual appeal of the Pakistani Rupee. Sources
