Currency Notes in Pakistan A Comprehensive Guide

The currency notes in Pakistan are a vital aspect of the country's economy. They come in various denominations, with the largest denomination being the 10,000 rupees note.

Pakistan's currency notes are printed by the State Bank of Pakistan, which is the country's central bank. The bank uses advanced security features to prevent counterfeiting.

You might be surprised to know that the 10,000 rupees note is the most widely used denomination in Pakistan. It's a significant amount for everyday transactions, especially in rural areas.

The currency notes in Pakistan are made from a special type of paper that is durable and long-lasting. This is to ensure that they remain in good condition even after frequent use.

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The word rūpiya is derived from the Sanskrit word rūpya, which means "wrought silver, a coin of silver", in origin an adjective meaning "shapely", with a more specific meaning of "stamped, impressed", whence "coin".

In 1947, the Pakistan (Monetary System and Reserve Bank) Order was issued, designating the Reserve Bank of India as the temporary monetary authority for both India and Pakistan until 30 September 1948.

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Currency notes issued by the RBI and the Government of India continued to circulate in Pakistan for the first seven months following partition.

Modified RBI notes in denominations of 2, 5, 10, and 100 rupees, and 1-rupee notes from the Government of India were later introduced, with the modifications involving inscribing Government of Pakistan in English and "Hakumat-e-Pakistan" in Urdu on the front of the notes.

The arrangement for the RBI to supply inscribed Indian notes to Pakistan was terminated on 30 June 1948.

In January 1961, the currency was decimalised, with the rupee subdivided into 100 pice, renamed (in English) paise later the same year.

Coins denominated in paise have not been issued since 1994.

The Pakistani rupee ceased to be legal tender in Bangladesh in 1972, after Bangladesh introduced the taka at parity with the Pakistani rupee.

Banknote features are quite interesting, and in Pakistan, they have some unique characteristics. All banknotes, except for the Re. 1/- and Rs. 2/-, feature a portrait of Muhammad Ali Jinnah on the obverse along with writing in Urdu.

The reverses of the banknotes vary in design and have English text, but the only Urdu text found on the reverse is the translation of the Prophetic Hadith, "Seeking an honest livelihood is an act of worship." This is written as حصول رزق حلال عبادت ہے (Hasool-e-Rizq-e-Halal Ibaadat hai).

Each banknote has a unique size and colour, with larger denominations being longer than smaller ones. They all contain multiple colours, but one colour predominates in each denomination.

A watermark is present in all banknotes for security purposes. On larger denomination notes, the watermark is a picture of Jinnah, while on smaller notes, it's a crescent and star.

Supply and exchange in Pakistan's currency notes are governed by specific rules to maintain stability. The commemorative Rs. 75 banknote is a one-time release, adding only 65 million notes to the 4.3 billion circulating this year, which won't impact the overall money supply.

The Rs. 10/- denomination has had two different main colors: dark purple and dark blue, used during different time periods.

Here's a breakdown of the Hajj banknotes' main colors and descriptions:

The commemorative Rs. 75 banknote is a one-time release, making up only a small portion of the 4.3 billion notes being circulated this year.

Only 65 million of the 4.3 billion notes will be the Rs. 75 denomination, which is a relatively small number.

The Rs. 75 banknote is a legal tender, but it won't impact the overall money supply.

Here's a table showing the Hajj banknotes:

The exchange rate is a crucial factor in supply and exchange. It's the price of one currency in terms of another, like the price of a pizza in dollars versus euros.

For example, let's say you're traveling to Europe and want to exchange your dollars for euros. If the exchange rate is 1 USD = 0.88 EUR, you'll get 88 euros for every 100 dollars you exchange.

In Pakistan, currency notes have been a subject of controversy due to counterfeiting concerns.

The State Bank of Pakistan has taken measures to introduce new security features to prevent counterfeiting.

The introduction of the new Rs. 10,000 note in 2014 was met with criticism due to its design and security features.

Many people felt that the note was not secure enough and could be easily counterfeited.

The State Bank of Pakistan has also faced criticism for its handling of old currency notes, particularly the Rs. 5,000 note which was withdrawn from circulation in 2014.

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The controversy surrounding the legal status of the Rs. 75 commemorative note in Pakistan was sparked by rumors that it would be demonetized.

Shopkeepers across the country refused to accept the note, leading to widespread confusion.

SBP spokesperson Abid Qamar addressed these concerns on the central bank's official Twitter account, reassuring the public that the note is fully valid for transactions.

Qamar explained that the SBP issues all currency under Section 25 of its Act, and the Rs. 75 note has no expiration date.

The commemorative note was issued in 2022 to mark Pakistan's 75th independence anniversary, featuring Quaid-e-Azam, Fatima Jinnah, Allama Iqbal, and Sir Syed Ahmad Khan.

Some individuals felt that the omission of figures like Pakistan's first Prime Minister, Liaquat Ali Khan, was significant, stirring debate.

Pakistan is taking a big step to combat counterfeit currencies by introducing new notes with enhanced security features. The State Bank of Pakistan will be incorporating distinct security numbers and design to modernise the Pakistani currency.

The transition to new currency notes will be gradual to avoid disruption and public panic. This approach is a good idea, as we've seen in other countries where a sudden change can cause chaos.

The central bank is concerned about the rise in counterfeit currency notes in the market. This is a serious issue, and the new notes are expected to ensure reliability in circulation and give businesses confidence.

Some experts wonder if the introduction of new currency notes could also include demonetisation of higher denomination notes, such as the Rs 5,000 note. This is a possibility, as some believe the circulation of these notes contributes to the black money market.

The goal of demonetisation would be to combat counterfeit and black money, but it's unclear if this will be part of the plan.

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Pakistan's central bank will introduce new currency notes with advanced security features to combat counterfeit currencies.

The transition to new currency notes will be gradual to avoid disruption and public panic, according to the Governor of the State Bank of Pakistan Jameel Ahmed.

The new currency notes will have distinct security numbers and design, making them more reliable in circulation.

Financial experts believe that the introduction of new currency notes could also include demonetisation of higher denomination notes to combat black money.

This move aims to ensure the integrity of Pakistan's monetary system and give businesses confidence in the circulation of currency.

The State Bank of Pakistan has released a commemorative 75 Rupees note marking the 75th anniversary of Independence day of Pakistan. This note was signed by Raza Baqir, the former governor of State Bank of Pakistan.

The note was made available to the public from September 30, 2022.

State Bank of Pakistan released a commemorative Rs. 75 banknote to celebrate the central bank's 75th anniversary.

Pakistan's central bank is planning to experiment with a new polymer plastic currency banknote later this year. This note will be issued in one denomination for the public and if that is well received by them then plastic currency will follow in other denominations.

Approximately 40 countries use polymer plastic banknotes, which are difficult to counterfeit and feature advanced security elements such as holograms and see-through windows. Australia pioneered the introduction of polymer banknotes in 1998.

The new polymer plastic banknote is expected to be easier to use and more secure than the current paper currency. It will likely feature advanced security elements to prevent counterfeiting.

The old paper currency notes will be redesigned with new security features by December and will remain in circulation for five years after that.

The State Bank of Pakistan has introduced new series of banknotes, which are more secure than the older designs. These new banknotes have replaced the older ones, making them no longer in circulation.

The older banknotes had a range of denominations, from Re. 1/- to Rs. 1,000/-. Each denomination had its own unique dimensions, main color, and description on the reverse side.

Here's a breakdown of the older banknotes:

The new series of banknotes, introduced in 2005, has a range of denominations from Rs. 5/- to Rs. 5,000/-. Each denomination has its own unique dimensions, main color, and description.