Karachi, February 13, 2026 – The Institute of Cost and Management Accountants of Pakistan (ICMAP) has formally recommended replacing the Rs10 banknote with a coin, a move it says could save billions of rupees annually while improving currency management and operational efficiency across Pakistan.
The recommendation follows the formation of a high-level committee by the Federal Cabinet, headed by the Finance Minister, to review the sustainability of the Rs10 note and evaluate more durable alternatives.
The Rs10 note is one of the most widely used denominations in Pakistan, circulating in nearly every daily transaction — from tea stalls and public transport to grocery shops and street markets. Despite its extensive usage, the note has a very short lifespan of just six to nine months, making it one of the costliest denominations to maintain.
According to ICMAP, the frequent printing and replacement of worn-out Rs10 notes result in annual expenditures ranging between PKR 8 billion and PKR 10 billion. Data from the State Bank of Pakistan’s Annual Report 2022–23 shows that while the Rs10 note accounts for over one-third of all banknotes printed, it represents only 1.2 percent of the total value of currency in circulation. This imbalance places significant pressure on printing facilities, raises operational costs, and increases environmental strain due to repeated production cycles.
ICMAP’s analysis highlights that replacing the Rs10 note with a coin — first introduced in 2016 — offers a cost-effective and sustainable solution. Coins have an average lifespan of 20 to 30 years, are highly durable, and integrate well with automated systems such as vending machines and electronic fare collection in public transport.
Based on estimates from the State Bank of Pakistan and Pakistan Mint, replacing the Rs10 note with a coin could save PKR 40 billion to PKR 50 billion over the next decade. The shift would convert recurring printing expenses into a long-term national asset, significantly improving fiscal efficiency.
The institute also cited successful international examples, noting that several countries have smoothly transitioned from low-value notes to coins. The United Kingdom replaced its £1 note with a coin in 1983, Canada replaced its $1 note in 1987 and $2 note in 1996, while Australia replaced its $1 and $2 notes in 1984 and 1988, respectively. These transitions resulted in lower costs, better durability, and improved operational efficiency, offering valuable lessons for Pakistan.
ICMAP proposed a phased transition plan spanning three years. In the first year, printing of new Rs10 notes would be discontinued while the supply of coins is gradually increased. The second year would focus on public awareness campaigns and encouraging retailers and transport operators to accept coins. By the third year, remaining Rs10 notes would be withdrawn naturally through the banking system.
The total transition cost, including upgrades to minting facilities and nationwide awareness campaigns, is estimated at PKR 3.5 billion. ICMAP projects that these costs would be recovered within 18 months through reduced printing and replacement expenses.
The institute stressed that replacing the Rs10 note with a coin is not only a sound economic decision but also a practical step toward improving everyday money management. The move is expected to save billions of rupees, streamline daily transactions, reduce environmental impact, and provide citizens with a more durable, reliable, and modern form of currency.