The State Bank of Pakistan (SBP) on Saturday refuted reports circulating regarding its plans to issue polymer (plastic) banknotes.

“SBP strongly refutes the reports as baseless and without substance. There is no such plan or suggestion currently under consideration regarding change in the substrate of banknotes from paper to the polymer,” the central bank said in a statement.

According to the SBP, it uses cotton based paper substrate which is manufactured locally by the Security Papers Limited, using primarily local raw materials.

The statement came a day after reports claimed that SBP was mulling to introduce new plastic currency notes to tackle counterfeit money.

It is pertinent to mention that SBP in January announced its decision to introduce new currency notes amid increasing complaints of fake currency notes.

“Complaints related to fake currency notes have increased,” SBP Governor Jameel Ahmed said during an informal conversation with reporters after addressing a press conference in Karachi on January 29.