ISLAMABAD: State Bank of Pakistan Governor Jameel Ahmed categoricallyrejected widespread social media rumours suggesting the imminentdemonetisation of the Rs5000 banknote, describing such claims as entirelyfalse and deliberately misleading. The statement came during a high-levelmeeting of the Senate Standing Committee on Finance and Revenue held atParliament House, where concerns about currency policy had triggeredintense public speculation in recent days.
The session, presided over by Senator Saleem Mandviwalla, was attended byFederal Minister for Finance and Revenue Muhammad Aurangzeb together withsenior representatives of the Federal Board of Revenue. Governor JameelAhmed used the platform to directly address the circulating misinformationthat had begun gaining traction across multiple digital platforms, creatinguncertainty among citizens and businesses alike regarding the validity ofthe highest denomination note currently in circulation.
“Reports circulating on social media claiming that the Rs5000 note is beingdiscontinued are fake,” the governor told committee members in unequivocalterms. He stressed that no policy decision has been taken to withdraw ordemonetise the existing Rs5000 banknote, underlining the central bank’scommitment to maintaining public confidence in the national currency systemduring a period of ongoing economic stabilisation efforts.
The governor further explained that the State Bank is presently engaged ina routine currency modernisation exercise involving the development ofupdated designs across the entire denomination spectrum, from the Rs10 noteto the Rs5000 note. These proposed designs incorporate significantlystrengthened security features aimed at combating counterfeiting, apersistent challenge for Pakistan’s paper currency in recent years.
According to the briefing provided to the senators, the new designs havealready undergone detailed review and approval by the State Bank ofPakistan’s own Board of Directors. Following internal clearance, theproposals have been formally submitted to the federal government for thenext stage of consideration, reflecting standard procedure for any majorchange to currency appearance or security specifications.
Governor Jameel Ahmed clarified that the ultimate authority to introducenewly designed banknotes rests exclusively with the federal cabinet. Heinformed the committee that the matter remains under active deliberation atthe cabinet level and confirmed that no final decision regarding issuanceor timeline has been reached at this stage, effectively dispelling anynotion of immediate policy action.
In response to a direct question raised by committee chairman SenatorSaleem Mandviwalla concerning the specifics of the proposed design changes,the SBP governor offered to present the draft designs during a closed-door,in-camera session. Acknowledging the sensitive nature of currency securityfeatures, the committee unanimously agreed to schedule a confidentialbriefing at its forthcoming meeting to allow detailed discussion away frompublic disclosure.
The timely official denial assumes particular significance against thebackdrop of Pakistan’s continuing economic recovery programme supported bythe International Monetary Fund. Any unfounded rumour concerninglarge-denomination notes has the potential to influence cash hoardingbehaviour, affect market liquidity, and create unnecessary pressure on thealready constrained foreign exchange reserves position.
Read Top Stories
Financial analysts observing the development noted that modernisingcurrency notes represents a periodic exercise rather than an emergencyresponse, with previous redesigns having occurred at roughly ten- tofifteen-year intervals in Pakistan. The inclusion of advancedanti-counterfeiting elements aligns with global best practices adopted bymost central banks to protect monetary integrity in an era of increasinglysophisticated forgery techniques.
The clarification is expected to restore stability to public perceptionregarding the Rs5000 note, which remains the highest denomination in activecirculation and plays a critical role in large-value transactions acrossthe formal and informal sectors of the economy. Market participants willnow await further official communication concerning any eventualintroduction of redesigned currency series.
Source:https://www.dawn.com/news/1845123/sbp-governor-denies-rumours-of-rs5000-note-demonetisation
Ahmed
ogimageimage-name
