PKR 5,000 note is not being discontinued in Pakistan

Pakistan’s central bank governor on Tuesday dismissed reports circulating on social media that the country’s highest-denomination currency note is being discontinued, calling the claims false and misleading.

State Bank of Pakistan Governor Jameel Ahmad told the Senate Standing Committee on Finance that the PKR 5,000 note is neither being withdrawn nor declared obsolete. He said rumors on social media suggesting otherwise have no factual basis.

Ahmad informed the committee that total currency in circulation in Pakistan stands at around PKR 11 trillion, underscoring the continued importance of high-denomination banknotes in the economy.

New currency notes

He also briefed the committee on new currency notes.

According to the governor, the central bank has completed work on the new currency designs and forwarded its recommendations to the relevant ministry after receiving approval from the State Bank Board.

The newly designed currency notes ranging from PKR 10 to PKR 5,000 will be issued after the federal cabinet’s approval, according to officials.

The governor said enhanced security features have been incorporated into the proposed notes to strengthen protection against counterfeiting. He clarified that existing currency notes will remain legal tender even after new designs are issued.

During the meeting, the chairman of the committee asked how the new currency designs were developed. In response, the governor said the central bank could present the new designs to the Standing Committee on Finance during an in-camera session.

Officials said the standing committee is expected to hold a closed-door briefing on the proposed currency notes at its next meeting.

In January, Pakistan’s federal cabinet was briefed on plans to introduce new banknotes.

As per the briefing, the new designs will reflect Pakistan’s regional and geographical diversity, highlight historical landmarks, and feature key social themes, such as women’s contribution to national development and climate change awareness.

The cabinet formed a sub-committee to review and deliberate on the proposed currency designs before their formal introduction.

Concern over bank charges

The governor also addressed concerns over charges imposed by banks for SMS alert services.

He warned that action would be taken against banks if they deduct fees for SMS services without informing customers in advance.

Ahmad said banks have increased charges for SMS alerts after telecom companies raised SMS rates, resulting in higher costs being passed on to customers.