Reports indicate that the State Bank of Pakistan (SBP) has acquired the banknotes and prize bonds printing functions of Pakistan Security Printing Corporation (PSPC) from the federal government for PKR 100 billion. PSPC will now function as a subsidiary of the SBP, whereas other functions of PSPC such as printing of national identity cards, passports and stamp papers have been separated and vested in National Security Printing Company Private Ltd (NSPC), which is a newly established firm completely owned by the federal government.
It was reported that the central bank paid a consideration of PKR 100.149 billion in June to the Government of Pakistan for transfer of control and ownership of PSPC based on the fair value. Primarily, the transaction will be a book management aimed at getting an extra PKR 100 billion from the central bank to meet non-tax revenue shortfalls.
In order to have complete control over manufacturing and issuance of banknotes and prize bonds, the central bank has been negotiating with the federal government for almost two years.
The move to acquire PSPC was in line with regional and global trends as many central banks, including those of France, Turkey, Italy, Australia, India and others, have in-house banknotes printing facilities.
The SBP has assumed the control of PSPC and designated Muhammad Haroon Rasheed Malik (Executive Director of the SBP) as Managing Director of the company.