The State Bank of Pakistan (SBP) stated on Monday that new currency notes with international security features will be issued soon and that the transition will not be disruptive.
"The new notes will be produced with worldwide security features. The notes will have new serial numbers, designs, and high-security features," the central bank's governor stated.
When asked when the new notes would be accessible, he stated that the framework for their design had already begun and that "I hope that their design framework will be finalized by March."
"However, we will not change the notes like India," SBP Governor Ahmad said, a move that sent shockwaves across one of the world's most populous countries when it demonetized in 2016.
When India demonetized a few years ago, there was widespread social upheaval, and its quarterly GDP suffered a one-time knock, but it has subsequently grown at high single-digit rates while payments have mostly switched to digital channels. As a result, inflation has been kept low, and interest rates are in the mid-single digits, which is stimulating economic development.
According to sources acquainted with the situation, the central bank is taking action in response to complaints over the circulation of fake currency notes.