ISLAMABAD (HRNW): In a strategic move to optimize currency management and reduce national expenditure, the Government of Pakistan has decided to discontinue the Rs 10 banknote and replace it with a Rs 10 coin. A high-level committee led by the Finance Minister has finalized the “Currency Management Report” and submitted it to the Federal Cabinet for final approval.
Economic Rationale for the Transition
The decision is backed by significant cost-benefit analysis regarding the durability of physical currency:
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Lifespan Comparison: According to official sources, a Rs 10 paper note has an average lifespan of only 6 to 9 months due to high circulation and wear. In contrast, a metal coin can remain in circulation for 20 to 30 years.
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Projected Savings: By shifting to coins, the government anticipates a minimum saving of PKR 40 to 50 billion over the next decade, primarily due to reduced printing and replacement costs.
This initiative is part of a broader economic reform plan aimed at ensuring the long-term sustainability of the country’s monetary system. Authorities believe that while the initial production of coins may be higher, the long-term fiscal benefits far outweigh the costs of constantly re-issuing paper notes of small denominations.
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