Pakistan to issue new notes to combat counterfeit currencies

The Governor of the State Bank of Pakistan said that the new currency notes will be incorporated with advanced international security features, including distinct security numbers and design to modernise the Pakistani currency.

Karachi: Pakistan’s central bank has announced that it will introduce new currency notes with enhanced security features to deal with the menace of counterfeit currencies in the cash-strapped country.

The Governor of the State Bank of Pakistan Jameel Ahmed told the media that the currency notes will be incorporated with advanced international security features, including distinct security numbers and design to modernise the Pakistani currency.

Ahmed also said the transition would be gradual so that Pakistan does not face disruption and public panic problems as has been witnessed in some other countries in the past.

However, some financial experts wonder whether the introduction of new currency notes could also include demonetisation of the Rs 5,000 or higher denomination notes to combat the counterfeit and black money market.

According to experts, cash-strapped Pakistan’s economy is influenced a lot by the illegal use of black money which is easier due to the circulation of higher denomination notes.

“It is the right step to ensure the integrity of Pakistan’s monetary system, but will this include demonetisation has to be seen,” said Sohail Farooq of the Capital Investment.

He confirmed there had been a rise in the use of counterfeit currency notes in the market, concerning the central bank.

“If new currency notes are circulated, it will ensure reliability in circulation and also give businesses confidence,” he said.

Another banker said the central bank must just ensure there is no inconvenience to the public and businesses during the implementation of the new currency.