Karachi: The federal cabinet has begun considering the
in-principle approval to introduce a coin to replace the 10-rupee note.
According to sources, the government will save Rs 40 to 50
billion by introducing a Rs 10 coin. A high-level committee headed by the finance
minister sent the currency management report to the cabinet. The currency
management report was prepared under the State Bank and Security Printing
Corporation laws.
According to the ICMA report, the average lifespan of a Rs
10 note is only 6 to 9 months, the average lifespan of a Rs 10 coin is 20 to 30
years, and about 35 percent of the total notes printed in the country every
year are Rs 10 notes.
According to the report, the introduction of a Rs 10 coin
will save at least Rs 40 to 50 billion in 10 years. The estimated printing,
replacement and administrative costs of a Rs 10 note are Rs 8 to 10 billion.
The cost of producing the coin is high, but there is no need to re-produce it
for decades.
It has been recommended that the State Bank of Pakistan
should phase out the printing of Rs 10 notes in three years. The Rs 10 coin was
first issued domestically on October 24, 2016. The phase-out of the Rs 10 note
is a legal process under the State Bank Act.
The report states that many countries, including the UK,
Canada, and Australia, have converted low-denomination notes into coins. The
reduction in printing of notes is part of green banking.
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