State Bank of Pakistan (SBP) Governor Jamil Ahmed has announced the introduction of new currency notes this year, which he says will be printed in phases.

Speaking informally to the media on Monday, Jamil Ahmed revealed that the State Bank of Pakistan is conducting a technical evaluation of the proposed designs, which will soon be presented to the federal cabinet for approval. “Pakistan's first new note will be issued in 2025. The new notes will not be issued all at once but will be introduced gradually across various denominations,” he stated.

The governor said he could not specify which denomination will be issued first, emphasizing that the transition to the new designs will be carefully planned to ensure a smooth rollout.

Digital currency in pipeline

In addition to the physical currency redesign, the State Bank says it is making significant strides toward introducing digital currency in Pakistan. For the past two years, the central bank has been working on improving its technological and regulatory capabilities in collaboration with international agencies and other central banks.

Jamil Ahmed noted that implementing digital currency will require amendments to the State Bank Act. A draft amendment bill is already under consideration by the government.

Also Read: SBP slashes policy rate amid positive economic trends

Once the legal framework and necessary infrastructure are in place, the central bank will unveil a comprehensive plan for launching digital currency in the country, he noted.

Meanwhile, the SBP on Monday slashed the policy rate by one percentage point, reducing it from 13% to 12%. This decision follows the latest meeting of the Monetary Policy Committee, which highlighted significant improvements in key economic indicators, including a persistent current account surplus and a sharp decline in inflation.

Addressing the press after the meeting, SBP Governor Jameel Ahmad stated that the reduction in the policy rate was made possible due to favourable economic conditions, particularly the country's current account, which has remained in surplus for six consecutive months.

"The ongoing surplus in the current account and the considerable drop in inflation have created a conducive environment for this rate cut," the governor explained.