Pakistan is reviewing a plan to replace the Rs 10 note with coins, which could phase out paper banknotes. The proposal, currently under consideration by the federal cabinet, aims to reduce the long-term costs of currency management.
If approved, authorities would gradually stop printing Rs 10 notes over the next three years. The recommendation is based on a detailed currency management report prepared by the State Bank of Pakistan and the Pakistan Security Printing Corporation.
Under the proposed Rs 10 note replacement plan, officials argue that paper notes have a short circulation life. On average, a Rs 10 note lasts only six to nine months due to heavy daily use.
In comparison, a ten-rupee coin can remain in circulation for 20 to 30 years. This significant durability difference has prompted authorities to consider a permanent shift.
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Despite its low value, the Rs 10 note represents about 35 per cent of all banknotes printed annually. Frequent replacement creates a substantial financial burden.
Officials estimate that producing and managing these notes costs between Rs 8 billion and Rs 10 billion each year. By transitioning to coins, the government could potentially save Rs 40–50 billion over the next decade, even though coins have higher initial production costs.
The report concludes that coins offer greater durability and lower long-term maintenance costs. As a result, they are viewed as a more sustainable solution for low-denomination currency.
If the cabinet approves the proposal, the State Bank will phase down note printing in accordance with the State Bank Act to ensure a smooth transition.
