**KARACHI:** The central bank of Pakistan is advancing towards issuing new currency notes, with the inaugural banknote anticipated to be released by the end of this year. Jameel Ahmad, the Governor of the State Bank of Pakistan (SBP), provided this update during a media briefing following a monetary policy meeting on Monday. During this meeting, the SBP announced a reduction in its benchmark interest rate by 100 basis points (bps), bringing it to 12 percent.
Jameel Ahmad, governor of the State Bank of Pakistan (SBP), shared this information during a media briefing on Monday following a monetary policy meeting. His comments came as the SBP cut its benchmark interest rate by 100 basis points (bps) to 12 percent.
Ahmad mentioned that the process of issuing new design currency notes is extensive, and a committee is currently working on it. The design of the new notes is pending approval, with the cabinet expected to give its final approval in the next two to three months.
He noted that the release of the new notes would occur in phases but did not disclose which specific denomination would be released first. “All currency notes will be issued gradually, but we are still in the final stages of approval,” he stated.
Ahmad said the SBP has been making efforts to introduce a central bank digital currency (CBDC). The government is currently considering a bill to create the necessary legal framework. Over the past two years, the SBP has been studying developments worldwide and learning from the technological frameworks adopted by other countries regarding digital currency.
“We are strengthening our capacity building, as this is a highly technical subject,” he said. The SBP is focusing on the technological and regulatory requirements and safeguards related to CBDC, which have been implemented by other central banks globally, he explained.
He mentioned that the CBDC bill is under government consideration. If it is passed, the SBP will take further steps. Once the groundwork is established, the SBP plans to implement the CBDC in phases.
This month, Pakistan introduced a private member’s bill, the ‘Virtual Assets Bill 2025’, to create a regulatory framework for the rapidly growing digital asset market, including cryptocurrencies and blockchain technologies. The bill seeks to lay the foundation for a digital rupee, pegged to the Pakistani rupee, under central bank regulations.
When asked if the banking industry could comply with the deadline set by the 26th Constitutional Amendment bill to eliminate all forms of ‘riba’ (interest) by January 2028, Ahmad responded that the SBP had introduced a Sharia governance framework and auditing process. The SBP is collaborating with the industry and has established a steering committee to provide strategic guidance for converting conventional banks into Islamic banks.
Ahmad noted that while there is high demand for sukuk (Islamic bonds) in the market, the current issuance volume is very low. The two main types of Sukuk in Pakistan are asset-based and asset-backed. The current structure of sukuk is asset-based, which requires the government to have sufficient available assets to collateralize and issue sukuk against them.
“We are reviewing an asset-light sukuk structure, and some countries have shown progress,” he disclosed. He also announced that the SBP will soon launch an Invest Pak platform, allowing individuals and corporations to invest directly in government securities. “We will launch Invest Pak, whereby the general public and corporations can invest directly in government securities. Testing is currently underway, and the launch will happen soon.”
All individuals and corporations with a bank account will be eligible to open their IPS accounts, which will enable them to invest in Pakistan’s government securities. Through an Investor Portfolio Securities (IPS) account, they can invest in Treasury bills and Pakistan Investment Bonds using funds from their regular bank accounts.
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