Government Considering Permanent Discontinuation of Rs. 10 Note

The federal government is weighing in-principle approval to permanently phase out the Rs. 10 currency note and replace it with a coin. The move is aimed at reducing long-term currency management costs and improving durability in circulation.

According to officials, the proposal has been placed before the federal cabinet for review. If approved, the decision could save billions of rupees over the next decade by cutting printing and replacement expenses.

The recommendation stems from a detailed currency management report prepared by the State Bank of Pakistan and the Pakistan Security Printing Corporation. The findings were presented to the cabinet by a high-level committee led by the finance minister.

Officials familiar with the report noted that low-denomination banknotes typically have a shorter lifespan compared to coins. Frequent replacement of paper notes increases production costs, while coins generally remain in circulation for many years with minimal maintenance.

The proposed shift aligns with international best practices. Many countries have already replaced lower-value banknotes with coins to improve efficiency and reduce recurring printing costs.

If the plan receives formal approval, the Rs. 10 note would gradually be withdrawn from circulation. Existing notes would remain legal tender until a specified deadline, after which coins would fully replace them in everyday transactions.

Financial experts suggest that the transition may also streamline cash handling for banks and retailers. However, public awareness campaigns would likely be necessary to ensure a smooth shift from paper notes to coins.

The federal cabinet is expected to review the proposal in the coming sessions. A final decision will determine whether the Rs. 10 note becomes a part of Pakistan’s monetary history.