Pakistan to redesign currency, replace Rs10 notes with coins

Dubai: Pakistan’s federal cabinet on Wednesday approved replacing Rs10 currency notes with coins as part of a wider currency reform initiative that will introduce redesigned banknotes with advanced security features and improved durability.

The decision was taken at a cabinet meeting chaired by Prime Minister Shehbaz Sharif, which also ratified a defence cooperation agreement with Kuwait and reviewed Pakistan’s diplomatic efforts to ease tensions in the Middle East.

According to a statement issued by the Prime Minister’s Office (PMO), the cabinet approved the new currency designs on the recommendation of the Ministry of Finance.

Currency design competition

The cabinet was informed that artists and designers from across Pakistan had been invited to submit proposals for the new banknotes. A special committee established by the prime minister subsequently held detailed consultations with relevant stakeholders before finalising the designs.

The new banknotes will incorporate modern security features aimed at preventing counterfeiting, while improved materials will be used to increase their lifespan.

The cabinet also approved the introduction of a Rs10 coin in place of the existing Rs10 banknote. However, the government did not announce a timetable for the withdrawal of existing notes or the introduction of the redesigned currency.

In another significant decision, the cabinet ratified a defence cooperation agreement between Pakistan and Kuwait, aimed at strengthening military cooperation and institutional links between the armed forces of the two countries.

The agreement was originally signed on June 11, 2023, while Kuwait ratified it on July 19.

According to the PMO, the agreement seeks to promote closer defence cooperation between the two countries, reflecting their long-standing bilateral relations.

Addressing the cabinet, Prime Minister Shehbaz Sharif said Pakistan remained actively engaged in efforts to restore peace in the Middle East, particularly amid continuing tensions between the United States and Iran.

He expressed concern over the sharp increase in global oil prices caused by regional instability and warned of the economic challenges arising from disruptions to energy supplies and maritime trade routes.

The prime minister referred to Pakistan’s recent diplomatic engagements with Tehran and other regional countries, including consultations involving Saudi Arabia and Turkiye under the Makkah Joint Defence Agreement.

Last month, Pakistan’s Chief of Defence Forces and Chief of Army Staff, Field Marshal Asim Munir, accompanied by Interior Minister Mohsin Naqvi, visited Iran as part of Islamabad’s efforts to facilitate dialogue between Washington and Tehran.

In another meeting held in October, Field Marshal Munir, the Saudi defence minister and Turkiye’s intelligence chief met senior Iranian officials in Tehran under the framework of the Makkah Joint Defence Agreement.

Prime Minister Shehbaz reaffirmed that Pakistan would continue its diplomatic engagement with regional partners to help reduce tensions and promote stability.

The prime minister also briefed the cabinet on measures being taken to protect consumers from rising energy costs and ensure adequate fuel supplies ahead of winter.

Shehbaz said the government was also introducing a transparent, competitive system for LPG imports, with supplies to be auctioned in lots to discourage profiteering and provide relief to consumers.

Pakistan has been facing disruptions in LPG supplies following the closure of border crossings with Iran, resulting in shortages and significant price increases in the domestic market.

The prime minister said the federal government was holding continuous consultations to secure sufficient LPG, LNG, petrol and natural gas supplies despite challenges caused by disruptions to regional maritime routes.