The State Bank of Pakistan (SBP) has firmly dismissed recent news reports suggesting the issuance of polymer (plastic) banknotes, categorically labeling them as baseless and lacking any substantiation.
Responding to mounting speculation, the central bank emphasized that there are no ongoing considerations or proposals regarding a transition from paper to polymer banknotes. Contrary to rumors, the SBP reiterated its commitment to the utilization of locally manufactured cotton-based paper substrate, produced by the Security Papers Limited, predominantly sourced from domestic raw materials.
While acknowledging the global trend of several countries adopting polymer banknotes, such as Australia, Canada, Chile, Nigeria, New Zealand, Romania, and the United Kingdom, the SBP underscored the current adherence to traditional paper notes.
Polymer banknotes have been hailed for their enhanced durability, resistance to counterfeiting, and lower environmental impact in various studies. However, the SBP remains steadfast in its preference for the existing substrate.
Addressing recent incidents of misprinted currency notes, specifically Rs 1,000 notes discovered in fresh bank packets earlier in the week, the SBP assured the public that despite rigorous quality control measures, occasional occurrences of misprinted notes reaching circulation cannot be entirely eliminated.
The central bank acknowledged the imperfections inherent in large-scale production processes, vowing to bolster internal controls to mitigate such incidents in the future. It emphasized the continuous refinement of quality assurance protocols to minimize the likelihood of misprinted banknotes reaching banks or the general public.
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