ISLAMABAD, Aug 25, 2026 (Reuters-style): Pakistan's central bank has recommended discontinuing the Rs10 banknote as the government prepares to introduce a new series of currency notes with enhanced security features, the State Bank of Pakistan's deputy governor told a Senate committee on Tuesday.

The deputy governor told the Senate Standing Committee on Finance and Revenue that a ministerial committee headed by the finance minister had approved designs for the new notes and that the State Bank was working on the next stages of the process.

Even after approval by the federal cabinet, the introduction of the new notes could take about a year, he said.

The federal cabinet will decide which denominations will be issued, while the State Bank has recommended withdrawing the Rs10 note, according to the deputy governor.

Senate raises concern over counterfeit notes

The committee, chaired by Senator Saleem Mandviwalla, also expressed concern over reports that automated teller machines (ATMs) had dispensed counterfeit Rs5,000 and Rs1,000 notes.

Lawmakers asked the State Bank to provide details of measures being taken to prevent counterfeit currency from entering circulation through the banking system.

Officials said the currency production system would be overhauled as part of the new note programme, with additional security measures aimed at reducing counterfeiting.

Rs5,000 note costs around Rs14 to produce

Responding to a question from Senator Abdul Qadir, the State Bank's deputy governor said it costs approximately Rs14 to produce a Rs5,000 banknote.

Senator Mandviwalla also questioned the appointment of consultants for designing the new currency and asked the State Bank to provide details of the relevant tendering process.

He called for the committee to receive a briefing from an international banknote printing company on currency production.

Senator Shahzeb Durrani said the State Bank had been working on the new notes for around two years but had yet to complete the process.

Officials said the initial banknote designs would be prepared manually before being processed through machines for production.

The committee also sought further information on safeguards that would be introduced to prevent counterfeit notes from being produced and circulated once the new currency series is launched.