SBP Increases Currency‑Printing Expenditure to Rs 29.6 billion in FY2025‑26
The State Bank of Pakistan spent nearly Rs 30 billion on printing banknotes, a 6% rise from the previous year, as currency in circulation grew to Rs 12.659 trillion.
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How This Affects the Exchange
Sector Effect
Negative · Do not buy
Higher printing costs signal rising cash demand and inflation risk, leading to a negative outlook for the broader market; avoid new positions.
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Desk call: Do not buy · Negatively affected
- EconomyNegatively affected
- MarketsNegatively affected
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Sectors: Economy, Markets — Negative · Do not buy. PSX tickers: MEBL, MCB, UBL, HBL, BAHL, FABL. Higher printing costs signal rising cash demand and inflation risk, leading to a negative outlook for the broader market; avoid new positions.
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Open on ProPakistani## SBP’s FY2025‑26 Printing Spend
The State Bank of Pakistan (SBP) reported that it allocated Rs 29.6 billion for the production of banknotes during the fiscal year 2025‑26, up from Rs 27.8 billion in FY2024‑25. The increase of Rs 1.8 billion represents roughly a 6 percent rise in printing costs.
## Reasons Behind the Higher Outlay
The rise is linked to a continued expansion of cash in the economy. Banknotes in circulation grew by Rs 1.8 trillion over the year, bringing total currency in circulation to Rs 12.659 trillion by the end of FY26. SBP attributed part of the cost increase to higher prices for paper, ink, transportation and other logistics associated with note production.
## Printing Arrangements
All Pakistani banknotes are printed by Pakistan Security Printing Corporation (Private) Limited, a wholly‑owned subsidiary of the SBP. The corporation is also preparing to introduce redesigned notes with enhanced security features, which will add to future printing expenses.
## Context of Digital Payments
Despite the surge in cash, digital payment adoption continues to accelerate. SBP has been promoting electronic transactions through initiatives such as the launch of its payment‑system subsidiary, RAAST, and other regulatory measures aimed at reducing reliance on physical currency.
## Outlook
The central bank expects further printing costs as new note designs are rolled out. Monitoring the balance between cash demand and digital payment growth will be crucial for assessing inflationary pressures and monetary policy stance.