KARACHI: State Bank of Pakistan (SBP) Governor Jameel Ahmad has announced a major update regarding the introduction of new currency notes in circulation in 2025.
In a media talk on Monday, the central bank chief said that newly designed currency notes will be printed in phases and will be marketed this year.
Jameel Ahmad revealed that the State Bank is conducting a technical evaluation of the proposed designs, which will soon be presented to the federal cabinet for early approval.
Furthermore, he added that Pakistan’s new note of various denominations will be introduced gradually in 2025.
The governor shared unclarity about how much the news currency note will be issued in the first place. He further did not specify which denomination will be issued first, emphasizing that the transition to the new designs will be carefully planned to ensure a smooth rollout.
Apart from that, Governor SBP announced a further 1 percent reduction in the key interest rate, bringing it down to 12 per cent.
This move is part of the ongoing efforts to manage inflation and support the economy. The decision, which will take effect on January 28, 2025, marks the sixth consecutive cut in the policy rate since June 2024, when it was as high as 22 per cent.
The SBP in a press release said the Monetary Policy Committee (MPC) decided to cut the policy rate by 100 bps to 12 percent, effective from January 28, 2025. “The Committee noted that inflation continued to trend downward in line with expectations, reaching 4.1 percent y/y in December”
Jameel Ahmad, addressing the media, mentioned that the country’s economic growth for the current fiscal year is expected to be between 2.5 per cent and 3.5 per cent, with signs of rising economic activity.
