SBP acquires banknotes, prize bond printing functions of PSPC

KARACHI: State Bank of Pakistan has acquired the banknotes and prize bonds printing functions of Pakistan Security Printing Corporation (PSPC) from the federal government.

The other security printing functions of PSPC including printing of passports, National ID Cards, stamp papers have been separated and vested into the National Security Printing Company (NSPC) a newly established company fully owned by the federal government.

SBP said that being the sole issuer of banknotes in the country gives utmost importance to the integrity and quality of banknotes. In order to have full control over the process of banknotes manufacturing and issuance, the central bank had been in negotiations with the federal government for over two years to acquire the banknotes and prize bonds printing function of PSPC.

The acquisition in line with the global and regional trends as a number of central banks including France, Turkey, Italy, Australia, India and various others have their own banknotes printing facilities.

The federal government, while agreeing to the Bank’s proposal, has separated the PSPC functions into banknote and prize bond printing and other security printing (OSP) units.

The OSP business has been assigned to NSPC, whereas the remaining core function of banknotes and prize bond printing has been sold to SBP.

SBP has paid Rs 100.149 billion to the government during the June 2017 for transfer of ownership and control, based on the fair value determined by an independent consultant appointed for this purpose.

The SBP has since assumed control of the PSPC and deputed Mr. Muhammad Haroon Rasheed Malik, Executive Director of the Bank, as Managing Director of the company.

The SBP said it is committed to run the PSPC as a fully owned subsidiary through an independent Board of Directors and in accordance with corporate governance best practices.