Pakistan Introduces New Currency Notes: A Look at the Upcoming Changes

The Government and State Bank of Pakistan is preparing for a vast change in its currency with the issue of new currency notes. In its pure sense, this major endeavour is to increase the security of the countrys currency, reduce counterfeiting and calibrate the nations monetary systems to best practices. Now let us go into the particulars of the approaching change.

The Need for New Currency Notes:

The main reasons that prompted government to issue new currency notes was as follows: In this case the most compelling factor was counterfeiting. Over a period of time, with the advancement in technology, the use of fake currency becomes easier for an individual and that is not very favorable towards the economy. Due to advanced security characteristics, it will be much harder to forge the new notes compared to the previous ones.

Key Features of the New Currency Notes:

The new currency notes will boast a range of advanced security features, including:

• Holograms: The images depicted on the currency will be complex, three-dimensional, and hard to replicate and will be one way of telling which of the currencies are fake or real.
• Watermark: A ‘wordmark’ is placed in the material and if the paper is held against the light, the wordmark is easily seen.
• Intaglio Printing: This technique helps in coming up with raised impressions which are hard to forge.
• Security Thread: An internal line will be visible when the note is held against light; it is thin and is embedded in the paper.
• Ultraviolet Features: The notes will feature components that will be visible under ultra violet light – separating them from fakes.

Design and Themes:

Pakistan’s cultural and historical sites will most probably be depicted on the notes of the new currency. The final designs of the notes are likely to be released by the State Bank of Pakistan (SBP) nearer the date for their issuance.

Release Date and Circulation:

Till now, the actual time frame for the introduction of the new currency notes has not been publicly determined. However, the SBP has stated that they are employing efforts in order to ease the process so as not make an abrupt and harsh impact felt by the people of the country. After the notes are dropped, they will be circulated in the economy as other physical money such that a drastic change will occur.

Co-Existence with Old Notes:

The following are some of the ongoing features to minimize disruption: The old currency notes will also remain legal for use for a future period even if the new notes is available. This will enable individual and firms to progressively swap their old notes with the new ones without causing a rush. But later it may declare the date after which it will stop accepting the new notes in circulation.

Impact on the Economy:

New currency notes are expected to have certain approaches contributing to the economy of Pakistan. Since security of the country’s currency will be improved, this will lead to improvement of the investor confidence and thus the economy. Also, the new notes may also help in the reduction of faked currency notes in circulation and this is very detrimental to both the business community as well as the consumers.

Conclusion:

The introduction of new currency notes in Pakistan is a right step towards the process of the modernization of its economy and check the menace of Counterfeit money. These notes will be more secured, and will reflect the so called cultural values that would in turn promote a stable economy in the country. Indeed, every time the period to reveal new pieces of banknotes is getting closer, the nation is closely waiting for these novelties.