The governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has announced that all currency notes will be replaced by the end of this year.

The statement was made during a briefing at the Senate’s Standing Committee on Finance, chaired by Senator Saleem Mandviwalla on Wednesday.

Ahmad revealed that the state bank is preparing to introduce new notes made from polymer paper, with the process expected to be completed by year-end.

“We are ready to bring in polymer currency notes,” he said. “In the first phase, one denomination will be introduced, which will be presented to the cabinet for approval.”

Addressing concerns about counterfeit notes, the governor noted that advanced security features would be included in the new notes to curb counterfeiting. He added that the bank is still assessing the durability, cost, and long-term viability of these polymer notes.

Committee member Mohsin Aziz raised concerns about the Rs5,000 note, suggesting it contributes to corruption and should be discontinued. However, Ahmad clarified that there is no proposal under consideration to phase out the Rs5,000 note.

“Suggestions to discontinue it have been made before, but they were not accepted,” he said. The Rs5,000 denomination will be part of the new currency design.

Ahmad also emphasised that law enforcement agencies are responsible for preventing the misuse of currency notes.