The Federal Govt. has given a notification on 4 July in which they said old design bank notes will cease with effect from December 2016.
Govt. has also decided to phase out gold design bank notes of Rs. 10, 50, 500 and 1000 said by a State Bank of Pakistan.
However, the old design banknote of Rs.5 and 500 has already been demonetized. State Bank of Pakistan had already started new design bank note series in 2005 to improve security durability and quality of the note.
The process of issuance of complete series of new banknotes, after the demonetization of old design bank notes completed in 2008 comprising eight denominations (Rs. 5, 10, 20 , 50, 100, 500, 1000, 5000).
The bank will accept old design bank notes and exchange the same with new design up to 30 November 2016, whereas the State Bank of Pakistan will only accept till December 21, 2021.