Several financial analysts have raised queries regarding the potential incorporation of demonetization measures targeting higher denomination currency notes alongside the introduction of new currency notes, as per recent announcements by Pakistan's central bank. The State Bank of Pakistan, under the leadership of Governor Jameel Ahmed, has disclosed plans to unveil updated currency notes featuring advanced security attributes aimed at addressing the proliferation of counterfeit currencies within the country's constrained financial landscape.
Governor Ahmed emphasized that the revamped currency notes would integrate cutting-edge international security features, encompassing distinct security identifiers and innovative designs, to modernize Pakistan's currency framework. He further underscored that the transition process would be methodically managed to avert disruptions and public apprehensions, drawing on lessons from past experiences witnessed in certain other nations.
Nevertheless, some financial experts have cast doubts on whether the initiative to introduce new currency notes might encompass measures such as the demonetization of the Rs 5,000 or higher denomination notes, with the objective of combating the prevalence of counterfeit currency and clandestine financial activities. Analysts argue that Pakistan's financially strained economy is significantly impacted by the illicit utilization of unreported funds, facilitated by the circulation of high-value banknotes.
Sohail Farooq, representing Capital Investment, articulated that while fortifying the integrity of Pakistan's monetary infrastructure is a commendable initiative, the prospect of demonetization remains uncertain and warrants observation. He acknowledged the heightened concerns expressed by the central bank regarding the escalating presence of counterfeit currency notes in circulation, underscoring the potential benefits of introducing new currency notes to enhance reliability and instill confidence within commercial circles.
Echoing similar sentiments, another banking professional stressed the imperative for the central bank to prioritize the seamless implementation of the new currency system, ensuring minimal inconvenience to the general public and commercial entities alike.
