Everyone loves money but, not everyone loves new currency notes in Pakistan. The reasons can be few, but influential enough to alter the fate of the national rupee. In today’s blog, we will highlight the latest news of upcoming banknotes in Pakistan, which has vibrated the media and created a buzz in different factions. 

When Will SBP Launch New Currency Notes in Pakistan?

The State Bank of Pakistan (SBP) seems ready to roll out new currency notes in Pakistan. By the end of this year in Dec 2024, Pakistanis will be privileged to play with and spend the newly designed currency notes of 10, 50, 100, 1000, and 5000 denominations, as unveiled by the central bank. 

Why Does the SBP Aim to Change Currency Notes?

When we dug deep to find the answer to this question, one of the SBP’s statements that crossed our eyes entailed that every 15 to 20 years, the central bank introduces new currency notes in Pakistan to eliminate the misuse of banknotes in any perspective.  Therefore, to freeze illicit money trade and suppress counterfeiting, SBP has taken the jaw to replace old currency notes in Pakistan by the end of 2024. 

The Dilemma of Currency Liquidity

Money is a liquid asset, and according to the International Monetary Fund (IMF), Pakistan is one of the top 10 countries with the highest ratio of currency in circulation. This hints towards the downsides of keeping buckets full of cash which affects the flow of the economy, and tax revenues. By introducing new notes, SBP aims to curb currency liquidity, compelling people to bring the cash from under the carpet and let the state authorities have a glance at it. Cash liquidity devalues money and SBP wants demonetization using new banknotes. 

What are the Features of New Currency Notes in Pakistan?

A few months ago, SBP initiated a competition among artists to submit currency note designs and the top three will be given prizes. Although the designs haven’t yet surfaced, however, the bank has revealed the significant features that the new currency notes in Pakistan will embrace. These include; 

• Unique serial numbers
• Fresh designs
• Transparent windows and holograms
• Made of polymer plastic instead of paper
• Advance security features
• Difficult to replicate
• Improves currency credibility
• Improves transparency of the financial system

Just like Canada and Australia, the State Bank aims to introduce plastic currency notes instead of the traditional paper notes which will be difficult to duplicate. 

What To Do With Old Currency Notes in Pakistan?

It’s time to decide the fate of your cash deposits and invest them in assets to avoid devaluation. The government encourages people with colossal cash to invest in different industries including real estate, agriculture, IT, or hospitality, and enjoy the advantage of accumulated money instead of facing devaluation. 

One of the efficient ways to avoid cash devaluation is to invest it in commodities like hotels, real estate, gold, stocks, and cars. However, in the current scenario, the most profitable industry is real estate and high-rise properties due to the growing demand for housing and commercial units. Thus, you can earn good capital gain by investing your cash in a demanding commodity like apartments, hotels, and plots. 

Why We Need New Currency Notes in Pakistan?

Keeping in mind the illegal use of cash, the nation needs new currency notes to impede cash deposits, improve financial transparency, and increase the tax ratio. Let’s hope this step will have a positive impact on the economy of the country. The State Bank ensures a smooth transition to the new notes so that the public does not face any difficulties in daily usage.