SBP denies reports of issuing plastic currency series

The State Bank of Pakistan (SBP) Saturday refuted “baseless” news reports suggesting that the central bank was mulling issuing polymer (plastic) banknotes series.

“SBP strongly refutes the reports [regarding issuance of polymer (plastic) banknotes] as baseless and without substance,” the central bank said in a statement, adding that there is no such plan or suggestion currently under consideration regarding the change in the substrate of banknotes from paper to polymer.

The statement comes days after a bank in Karachi received “misprinted” banknotes with two Rs1,000 notes having “blank” back sides.

In a purported video, a manager of the National Bank branch in Karachi showed the ‘one-side blank’ currency of Rs1000 denomination issued by the State Bank of Pakistan (SBP).

In a clarification issued on the matter, the SBP said: “Some of the notes are misprinted occasionally but the same are detected through the checks and balances put in place.”

“However, no matter how robust and effective a manmade system is, it’s still susceptible to a margin of error, whether here or elsewhere including the developed jurisdictions.

“However, the internal controls are being further strengthened to avoid recurrence of such instance in future,” it added.

“The internal controls are being further strengthened to avoid recurrence of such instance in future,” it added.