Cabinet approves new banknote designs and a Rs10 coin

Pakistan’s federal cabinet on Wednesday approved the designs of new currency notes and agreed to introduce a Rs10 coin to replace the Rs10 banknote, The Express Tribune reported, citing a statement from the Prime Minister’s Office (PMO).

New notes and a Rs10 coin

On the recommendation of the Ministry of Finance, the cabinet approved the new note designs after a detailed briefing on how they were chosen. The briefing said proposals had been invited from artists and designers across the country, and that a cabinet committee set up by the prime minister had held consultations with stakeholders on the designs.

According to the PMO statement, the notes will carry enhanced security features to prevent counterfeiting and use modern materials meant to extend their lifespan. The statement did not name the denominations, the materials or a date for the notes to enter circulation. The cabinet also approved the introduction of a Rs10 coin to replace the existing Rs10 banknote, again without a date.

Defence pact with Kuwait

The cabinet ratified the Pakistan-Kuwait Defence Cooperation Agreement, which was finalised on June 11, 2023 to promote cooperation between the two countries in the defence sector. The PMO said the Kuwaiti government ratified it on July 19. The ratification follows a series of high-level contacts between Kuwaiti and Pakistani military officials in recent months aimed at expanding bilateral defence coordination, according to the statement.

Khyber Pakhtunkhwa: governor takes over day-to-day powers

The cabinet approved the transfer of powers delegated to the Khyber Pakhtunkhwa chief minister to the provincial governor for day-to-day affairs during the period of emergency. The PMO said the move was meant to ease administrative matters and improve governance. The governor will send a monthly report to the federal government on how the powers are used. The cabinet expressed hope that the KP Advisory Council, under the governor’s leadership, would work for the welfare of the province’s people and help restore peace and security.

Prime Minister Shehbaz Sharif told the meeting that a Rs160 billion development package had been finalised for the province, with security as the priority. He said a large number of terrorists had been eliminated in the province and he expressed confidence that terrorism would be eradicated through the sacrifices of security personnel and coordinated efforts by law enforcement agencies and the federal and provincial governments. He praised the people of Khyber Pakhtunkhwa for resisting terrorism for decades. On Balochistan, he said terrorism had been eliminated there in 2018 but had unfortunately resurfaced, and that the federal and provincial governments would work with security institutions to suppress it again.

Other decisions

The cabinet ratified decisions taken at the October 26 meeting of the Cabinet Committee on Government-Owned Institutions, and at several meetings of the Cabinet Committee on Legislative Cases held between January 22 and September 22.

Background

The federal government imposed emergency and governor’s rule in Khyber Pakhtunkhwa on October 11, after the PTI’s march began in Lakki Marwat. The Peshawar High Court later issued notices on petitions challenging the emergency and governor’s rule. Wednesday’s decision sets out how the governor will run the day-to-day work that the chief minister’s office had previously handled under delegated powers.

Why it matters

For ordinary people, the currency decision is the one they will eventually see in their pockets. The statement as reported did not say when the coin or the new notes will be issued, which denominations will change first, or what the designs look like, so those are the details to watch for from the finance ministry and the State Bank of Pakistan.

The Khyber Pakhtunkhwa decision matters politically. The governor now holds powers that normally belong to an elected chief minister, with only a monthly report to the federal government as a check. What to watch is how the Advisory Council works in practice and how the Rs160 billion package is spent.

This article draws on reporting by The Express Tribune and a statement from the Prime Minister’s Office.