10-rupee coins could save billions, new report recommends

Report highlights short lifespan of 10-rupee notes, proposes coins to reduce long-term costs

KARACHI:

A new report on currency management, submitted to the federal cabinet by a high-level committee led by Finance Minister Muhammad Aurangzeb, has recommended the introduction of 10-rupee coins as a more cost-effective solution for Pakistan's currency system, raising issues with the lifespan of certain currency notes.

The report, compiled by the State Bank of Pakistan and Security Printing Corporation under their respective laws, highlights significant issues with the current system of paper currency.

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According to the findings of the Institute of Cost and Management Accountants of Pakistan (ICMA), the average lifespan of a 10-rupee banknote is just 6 to 9 months, compared to the 20 to 30-year lifespan of a 10-rupee coin.

The report also revealed that approximately 35% of all currency notes printed annually in the country are 10-rupee notes, making them a significant portion of Pakistan's total currency production.

The report suggested that introducing the 10-rupee coin would lead to savings of up to 40 to 50 billion rupees over 10 years. This contrasts with the high costs associated with printing, replacing, and managing paper currency. The report estimates that the total expenditure on 10-rupee notes, including printing and administrative costs, stands at around 8 to 10 billion rupees annually.

While the initial cost of producing coins may be higher, the report argued that coins would eliminate the need for frequent re-production, thus offering long-term savings.