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Pakistan First Banknotes

Started by Iftikhar Ahmad, October 03, 2023, 08:29:46 AM

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Iftikhar Ahmad

Following advice from an expert committee, the Governor-General of undivided India issued the 'Pakistan (Monetary System and Reserve Bank) Order, 1947' on August 14th, 1947, the day before partition. Under this order, the Reserve Bank of India was to be the common currency authority for India and Pakistan until September 30th, 1948, with notes issued by the Reserve Bank of India and the Government of India remaining legal tender in Pakistan until the same date. The order also allowed for notes issued by the Reserve Bank of India and the Government of India to be inscribed with 'Government of Pakistan' in Urdu and English and placed into circulation from April 1st, 1948 under the responsibility of the Government of Pakistan. So, following seven months where notes of the Reserve Bank of India and the Government of India continued to circulate in Pakistan, modified notes of the Reserve Bank of India in the denominations of Rs. 2/-, 5/-, 10/- and 100/- rupees were introduced as planned, along with modified 1-rupee note of the Government of India.

Pakistan's first banknotes were presented to Quaid-i-Azam on April 1st, 1948 by the Ministry of Finance. All the notes have the serial number of 000001and a perforation on front side (PAID 1-4-48).


That's a good explanation of a sensible way to deal with the partition. People would see the overprinted notes at once, but the new state obtained time to get its banknote system organised.

For the sake of those unfamiliar with the notes, the overprints are on the obverse in the light frame (there's probably a watermark there) at left, English at the top, Urdu at the bottom.

I wonder if all the overprinted notes were newly printed. Also, what happened if you'd want to pay with a non-overprinted note in Pakistan. Would it be accepted? Refused? Could it be exchanged for an overprinted note?

An unidentified coin is a piece of metal. An identified coin is a piece of history.