KARACHI: The State Bank of Pakistan (SBP) acquired the banknote- and prize bond-printing functions of Pakistan Security Printing Corporation (PSPC) from the federal government on Wednesday.
According to a press release, other functions of PSPC such as the printing of passports, national identity cards and stamp papers have been separated and vested in National Security Printing Company Private Ltd (NSPC), a newly established entity fully owned by the federal government.
“In order to have full control over the process of banknote manufacturing and issuance, the SBP has been in negotiation with the federal government for over two years to acquire the banknote- and prize bond-printing function of PSPC,” the SBP said.
This was in line with global and regional trends as a number of central banks, including those of France, Turkey, Italy, Australia, India and others, have their own banknote-printing facilities, it added.
The federal government, while agreeing to the SBP’s proposal, has separated PSPC functions into banknote- and prize bond-printing and other security printing (OSP) units.
The OSP business has been assigned to National Security Printing Company (NSPC), whereas the remaining PSPC having core function of banknotes and prize bond printing has been sold to SBP.
The Bank has paid a consideration of Rs 100.149 billion to the GoP during the month of June, 2017 for transfer of ownership and control, based on the fair value as determined by an independent consultant appointed for this purpose.
The SBP has since assumed control of the PSPC and deputed Muhammad Haroon Rasheed Malik, Executive Director of the Bank, as Managing Director of the company. The SBP is committed to run the PSPC as its fully owned subsidiary through an independent Board of Directors, in accordance with corporate governance best practices.