"The coins are no more cost-effective and there is an urgent need to readjust their metal composition and weight to make them economically viable," the sources added. The sources said that coins of Rs 1, 2 and 5 denominations are in vogue pursuant to the federal cabinet's decision.
The composition of the coins was also determined in the 1990s, but since then prices of metals have increased manifold which surpassed their intrinsic value. They said, the current cost of 1,2 and 5-rupee coins is Rs 2.68, Rs 3.27 and Rs 6.63, respectively.
The ministry has proposed pure aluminium composition for Rs 1 and 2 while for Rs 5 coin an adjustment of weight has been recommended, the sources said adding that State Bank of Pakistan (SBP) has also agreed to the proposal.
Further, concerns have been regularly voiced that the sanctity of the names of Muhammad and Ali' appearing on Re.1 coin is not observed and the SBP has, therefore proposed to remove the names from the coin, however, the word ' Quaid-e-Azam' may be retained.
"The designs of all the coins will remain the same and there will be no inscription on Rs 2 and 5coins. All the existing coins will continue to remain in circulation along with the new coins," the sources concluded.