If the Pakistan government replaces the PKR 10 banknote with a coin, it could save between PKR 40 billion and PKR 50 billion over the next decade, according to a proposal by the Institute of Cost and Management Accountants of Pakistan (ICMA), which says the move would significantly reduce recurring printing costs and improve currency management.
The recommendation follows the federal Cabinet’s formation of a high-level committee led by the finance minister to examine the sustainability of the PKR 10 note and explore more durable alternatives.
The PKR 10 note is widely used across Pakistan for everyday transactions from tea stalls and buses to grocery shops and local markets. Despite its extensive circulation, the note has a short lifespan of only six to nine months, resulting in frequent printing and replacement.
Annual expenses associated with printing and replacing the PKR 10 note are estimated at between PKR 8 billion and PKR 10 billion.
Although it accounts for more than one-third of all banknotes printed, it represents just 1.2% of the total currency value in circulation, according to the 2022-23 annual report of the State Bank of Pakistan. This imbalance places pressure on printing facilities, increases operational costs and contributes to environmental strain due to repeated production.
ICMA’s analysis indicates that switching to a PKR 10 coin — first introduced in 2016 — offers a practical alternative.
Coins typically last 20 to 30 years and are compatible with automated systems such as vending machines and public transport fare collection. Data from the State Bank and the Pakistan Mint suggest that replacing the banknote with a coin would convert recurring annual expenses into a long-term national asset.
Under the proposed plan, the transition would take place over three years. In the first year, printing of new PKR 10 notes would cease while coin production gradually increases.
The second year would focus on public awareness campaigns and encouraging retailers to accept coins.
By the third year, remaining notes would be withdrawn naturally through the banking system.
Transition costs, including upgrades to minting facilities and communication efforts, are estimated at PKR 3.5 billion and are expected to be recovered within 18 months through operational savings, ICMA said.
Several countries have replaced low-denomination notes with coins, including the United Kingdom, Canada and Australia, where similar transitions led to long-term cost reductions and improved efficiency.
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