KARACHI: The State Bank of Pakistan (SBP) on Tuesday strongly refuted claims that it is not issuing fresh banknotes ahead of Eid-ul-Fitr.

The central bank issued a statement clarifying that it continues its long-established practice of providing fresh banknotes to commercial banks in preparation for the Eid festivities. SBP emphasized that it is utilizing the extensive nationwide branch networks of these banks to ensure public access to fresh currency notes. SBP assured the public that so far, it has issued Rs27 billion in fresh banknotes across all denominations to 17,000 commercial bank branches. These notes are meant for distribution to the general public during the upcoming Eid holiday period.

The central bank further explained that arrangements have been made to guarantee the availability of good-quality banknotes through the country's Automated Teller Machine (ATM) network as well. This ensures that people can access fresh currency notes from ATMs without disruption. In line with its efforts to maintain a smooth supply of fresh currency notes, the SBP has also deployed cash monitoring teams to conduct on-site inspections. These teams are ensuring that fresh banknotes are distributed efficiently at all commercial bank branches across the country.

SBP's monitoring measures aim to prevent any shortages or delays in the availability of fresh currency, especially during the busy festive season when demand for new notes typically surges. Additionally, the central bank highlighted a significant upgrade to its operations. As part of its ongoing efforts to improve the security and quality of Pakistan's banknotes, SBP awarded a Rs3.4 billion project for the upgrading of its paper machine to a German firm. This initiative will enhance the production capacity of new-design banknotes, ensuring that the supply of currency notes can meet the growing demand. SBP also assured the public that the quality of the banknotes being distributed remains top-notch.

The central bank continues to prioritize the public's access to fresh and clean currency notes, particularly during Eid when there is traditionally a high demand for new notes due to the cultural and religious significance of gift-giving during the holiday. The SBP's response comes after recent rumors of a shortage of banknotes, especially ahead of the Eid holidays. The bank urged the public to remain calm and assured that it is fully prepared to meet the demand for fresh currency notes through its network of commercial banks and ATMs. The bank's measures are aimed at ensuring that the public has access to sufficient new banknotes in time for the celebrations, dispelling concerns about any potential shortage.

The SBP reassured the public that the distribution of fresh banknotes is proceeding as planned, with strict monitoring procedures in place to ensure the smooth and efficient supply of currency during the festive period.