Central bank to issue new currency notes, says SBP governor

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KARACHI: The central bank of Pakistan is developing with the issuance of a new design currency note, the first new note will be issued by the end of this year.

State Bank of Pakistan (SBP) Governor Jamil Ahmed shared this information during a media briefing after a monetary policy meeting on Monday. His comments came when the SBP reduced its benchmark interest rate by 100 points (BPS) to 12 percent.

Ahmed said the process of issuing new design currency notes is wide, and a committee is currently working on it. At present, the design of new notes is pending, which is expected to be finalized in the next two to three months.

He noted that the release of the new notes would be in the phase but did not reveal which specific difference would be issued first. “All currency notes will be issued slowly, but we are still in the final stages of approval,” he said.

Regarding the introduction of the Central Bank Digital Currency (CBDC), Ahmed said that SBPC is trying to introduce the BBC. A bill is currently under consideration by the government to create the necessary legal framework. The SBP has been studying and learning worldwide developments from the technical framework adopted by other countries in relation to digital currency over the past two years.

“We are in the process of strengthening our ability to build our potential, because it is a very technical article,” he said. He explained that SBPC is focusing on the technical and regulatory requirements and security measures related to the BBC, which has been implemented by other central banks globally.

He said the CBDC bills are considering the government. If it passes, the SBP will take further steps. The SBP plans that once the foundation is established, the CBDC plans to implement the stages.

This month, Pakistan introduced a private member’s bill, ‘Virtual Asset Bill 2025’, which aims to create a regulatory framework for the rapidly growing digital asset market, including crypto currency and blockchain technologies. In this bill, under the Central Bank rules, the foundation of a digital rupee, which is with the Pakistani rupee.

When asked if the banking industry could be able to comply with the current deadline set by the 26th Constitutional Amendment Bill to eliminate all forms of ‘Riba’ (interest) by January 2028, Ahmed replied that SB P has introduced the Shariah governance framework and auditing. Process. The SBP is cooperating with the industry and has set up a steering committee to provide strategic guidance to transform traditional banks into Islamic banks.

Ahmed noted that when there is more demand for Sukuk (Islamic bonds) in the market, the current volume of release is very low. In Pakistan, two important types of Sukkuk are based on assets and supported assets. The current structure of Sukuk is based on the asset, under which the government is demanding that they have enough assets available to launch suicide attacks and to release Sukk.

He revealed, “We are reviewing the Asset Light Suffice structure, and some countries have shown progress.” He also announced that the SBP would soon launch a new platform called Investment Pak, which would allow individuals and corporations to invest directly in government securities. “We are going to launch the investment Pak, under which the general public and the corporation can invest directly in government securities. Currently the investigation is underway, and the launch will be soon.

All bank account individuals and corporations will be eligible to open their IPS account, so that they will be able to invest in Pakistan’s government security. An investor Portfolio Securities (IPS) account can invest in Treasury Bill and Pakistan Investment Bonds, in which funds can be used from their regular bank accounts.