State Bank of Pakistan Governor Jameel Ahmed told a Senate committee on banking and finance in Islamabad that all the existing paper currency notes are being redesigned with new security features by December this year.

Ahmed said the newly redesigned banknotes in the denominations of Rs 10, 50, 100, 500, 1000 and 5000 would be issued in December.

“The old notes would remain in circulation for five years being eased out of the market by the central bank,” a source close to the committee said.

The State Bank governor also informed the Senate committee members that a new polymer plastic bank note would be issued in one denomination for the public and if it is received well, plastic currency would follow in other denominations.

Presently around 40 countries use polymer plastic banknotes which are hard to counterfeit and have more enhanced security features like hologram and see-through-window. 

Australia was the first country to introduce polymer banknotes back in 1998.

Ahmed also confirmed that the central bank had no plans to cancel the Rs 5,000 note even as one member, Mohsin Aziz, insisted it made it easier for corrupt people to do their business.