Pakistan’s federal cabinet has approved the introduction of a Rs10 coin to replace the existing Rs10 banknote. The decision was made on the recommendation of the Ministry of Finance as part of changes to the country’s currency system.
According to a statement issued by the Prime Minister’s Office on September 16, 2026, the cabinet also approved the designs of a new series of currency notes. The government said that artists and designers from across Pakistan were invited to submit ideas for the new designs. A committee formed by the prime minister also consulted relevant stakeholders before finalising the proposals.
The new banknotes are expected to include improved security features and modern materials to help prevent counterfeiting and increase their lifespan.
Why Is Pakistan Replacing the Rs10 Note with a Coin?
The main reason behind replacing the Rs10 banknote is its declining purchasing power and limited lifespan. Financial experts believe that when a currency loses value over time, lower-denomination notes become less useful for everyday purchases.
Former State Bank Governor Salim Raza explained that the value of the Pakistani rupee has declined over the years, reducing the purchasing power of smaller denominations. He pointed out that Rs10 has become a relatively small amount and cannot buy much compared with the past.
Banknotes also wear out, tear and need to be replaced regularly. Coins, on the other hand, generally remain in circulation for much longer. This makes coins a practical alternative for denominations that are used frequently but have relatively low purchasing power.
Pakistan has already followed a similar approach in the past. The country replaced its one, two and five-rupee banknotes with coins, although these smaller coins have gradually become less visible in everyday transactions.
Is Printing Banknotes More Expensive Than Making Coins?
The cost of producing currency is another factor in the discussion, but experts say it is not necessarily the main reason for replacing the Rs10 note.
According to the State Bank of Pakistan’s annual report for FY2025-26, the total cost of printing banknotes reached Rs29.6 billion, compared with Rs27.8 billion in the previous financial year. However, these figures cover all denominations and do not provide separate printing costs for Rs10 notes.
Financial expert Rashid Masood Alam explained that banknote production involves expenses such as specialised paper and ink. Coin production also requires costly materials and a more complicated manufacturing process.
He argued that the decision to replace a low-value banknote with a coin is mainly linked to its declining purchasing power and reduced usefulness, rather than simply the cost of printing it.
When Will the Rs10 Coin Be Introduced?
The federal cabinet has approved the proposal, but the announcement does not provide a specific date for the new Rs10 coin’s circulation. Further details about its design and introduction are expected from the relevant authorities.
For now, the decision marks another change in Pakistan’s currency system. The introduction of the Rs10 coin is intended to replace a banknote that has lost much of its purchasing power and may offer a longer-lasting option for everyday transactions.
