Pakistan King George VI Banknotes: Early Independence Era

Pakistan's George VI banknotes hold a special place in the annals of numismatic history, symbolizing the transitional phase from colonial rule to independence. These banknotes, issued under the reign of King George VI, represent the early days of Pakistan as a newly formed nation in 1947. With their unique design elements and historical significance, George VI banknotes from Pakistan are treasured by collectors and historians alike. This article delves into the origin, design, and legacy of these banknotes, providing a comprehensive overview of their importance in the world of numismatics.

Birth of a Nation

The birth of Pakistan in 1947 marked the realization of a dream that had been in the making for decades. The idea of a separate nation for Muslims in India gained momentum with the Pakistan Declaration of 1933 titled Now or Never; Are We to Live or Perish Forever?, authored by Choudhry Rahmat Ali, who coined the name "PAKISTAN" from the five Northern units of India. This vision for a separate homeland for Muslims was driven by the desire to create a nation where Muslims could freely practice their religion and live according to their cultural and social values, distinct from the Hindu-majority regions of India.

The Lahore Resolution of 1940, also known as the Pakistan Resolution, was a pivotal moment in the struggle for Pakistan's independence. Adopted by the All India Muslim League, this resolution formally articulated the demand for "independent states" for Muslims in the northwestern and eastern zones of India. This marked a clear demand for a separate nation, galvanizing Muslims across India and setting the stage for the subsequent political developments that would lead to the creation of Pakistan.

The 1946 Indian provincial elections played a crucial role in the creation of Pakistan. The All India Muslim League's sweeping victory in Muslim constituencies demonstrated its position as the true representative of Muslim India. This electoral success strengthened the Muslim League's demand for a separate Muslim state and made it clear to the British government and the Indian National Congress that the partition of India was inevitable. The success of the Muslim League in these elections was a clear mandate for the creation of Pakistan, reflecting the aspirations of the Muslim population for a separate nation.

The path to independence accelerated when British Prime Minister Clement Attlee announced on 20 February 1947 that British rule in India would end by June 1948. Lord Mountbatten, the last Viceroy of India, announced the Mountbatten Plan on 3 June 1947, which outlined the partition of British India into two independent dominions: India and Pakistan. The Indian Independence Act 1947 received Royal Assent on 18 July 1947, officially dividing British India into the Dominion of India and the Dominion of Pakistan, effective from 15 August 1947.

On 14 August 1947, Pakistan was born, consisting of the predominantly Muslim regions of West Pakistan (present-day Pakistan) and East Bengal (renamed East Pakistan in 1955, now Bangladesh). The provinces of Bengal and Punjab were partitioned between the two new nations, leading to one of the largest mass migrations in history, accompanied by widespread communal violence. The birth of Pakistan marked the emergence of a new nation culminated by years of struggle, political maneuvering, and persistent demand.

Pakistan (Monetary System and Reserve Bank) Order, 1947

Until Pakistan gained independence from British India, British India banknotes and coins were used. The creation of Pakistan brought about the urgent need for a separate currency system. The "Pakistan (Monetary System and Reserve Bank) Order, 1947" was a crucial piece of legislation that laid the foundation for Pakistan's independent monetary system following the partition of British India. Issued by the Governor-General of undivided India on 12 August 1947, just days before Pakistan's independence, the order provided the framework for the creation of Pakistan's currency and the transition from the Indian rupee to the Pakistani rupee

The Order authorized the Reserve Bank of India to continue functioning as the central bank for Pakistan temporarily, allowing it to issue currency and manage the country's financial and banking affairs during the initial phase of independence. The order also made provisions for the temporary use of modified Indian notes in Pakistan, which would be circulated from 1 April 1948. Under this order, notes issued by the Reserve Bank of India and the Government of India would remain legal tender in Pakistan until 30 September 1948.

By May 1948, recognizing the need for economic autonomy and amid growing friction between the governments of India and Pakistan, Jinnah took decisive steps to establish the State Bank of Pakistan. The tensions and challenges of this period led to amendments in the original order, shortening the period in which the Reserve Bank of India would act as the monetary authority for Pakistan. After consultations between the two governments, it was agreed that the Reserve Bank's responsibility would cease on 30 June 1948, instead of the initially planned date.

Inscriptions on British India Banknotes

In the immediate aftermath of Pakistan's independence in 1947, the newly formed nation initially continued to use British India banknotes. However, to establish a distinct monetary identity, the "Pakistan (Monetary System and Reserve Bank) Order, 1947" was enacted, authorizing the modification and circulation of Indian notes within Pakistan. These modified banknotes, issued in denominations of 1, 2, 5, 10, and 100 Rupee, featured specific inscriptions that marked them for official use within the newly independent country.

The front of each note displayed the phrase "Government of Pakistan" in English at the top of the white area reserved for the watermark, and its Urdu equivalent, “حکومت پاکستان,” (Hakumat-e-Pakistan) at the bottom. The inscriptions on these notes were directly incorporated into the printing plates and were not overprints. Unlike the overprinted banknotes issued by the Military Administration of Burma and the Burma Currency Board, which often showed noticeable shifts in positioning, the inscriptions on Pakistan’s modified notes were precise and consistent, reaffirming that the Pakistan inscribed notes were not overprints.

On 1 April 1948, after a transitional period of seven months where Indian notes continued to circulate in Pakistan, the modified banknotes were officially introduced. These included the 2, 5, 10, and 100-rupee notes issued by the Reserve Bank of India, as well as the modified 1-rupee notes of the Government of India. The meticulousness of these modifications—inscribed directly onto the printing plates rather than overprinted—underscored the importance of ensuring the notes’ authenticity and preventing counterfeiting.

1 Rupee Banknote

The Government of India 1 Rupee banknote which has the portrait of King George VI at the upper right has a green serial number with an inset letter A engraved with the text "GOVERNMENT OF PAKISTAN" in English and Hakumat-e-Pakistan in Urdu in the watermark area on the front. The inscription is in greenish-gray.

Denomination: 1 Rupee
Issuer: Government of Pakistan
Size: 101 x 63 mm
Color: Blue-gray
Obverse Design: King George VI facing left
Reverse Design: 1 rupee coin dated 1940; Language panel
Date: None
Signature: C.E. Jones
Material: Paper
Security Thread: None
Watermark: King George VI facing right
Printer: India Security Press
Serial number color: Green serial number with A inset letter
Catalog Number: Banknote Book B101; Pick 1
Known Prefix: Q/37 - Q/99; R/0 - R/40; R/74 - R/99; S/0 - S/55 (186 prefixes)

2 Rupee Banknote

The Reserve Bank of India 2 Rupee banknote which has the portrait of King George VI facing left and the signature of C.D. Deshmukh engraved with the text "GOVERNMENT OF PAKISTAN" in English and Hakumat-e-Pakistan in Urdu in the watermark area on the front. The inscription is in lilac.

Denomination: 2 Rupee
Issuer: Government of Pakistan
Size: 114 x 63 mm
Color: Lilac
Obverse Design: King George VI facing left
Reverse Design: Reserve Bank of India logo; Language panel
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing right and text
Printer: India Security Press
Catalog Number: Banknote Book B102; Pick 1A
Known Prefix: G/27 - G/36; G/53 - G/67 (25 prefixes)

5 Rupee Banknote

The Reserve Bank of India 5 Rupee banknote which has the portrait of King George VI facing front and the signature of C.D. Deshmukh engraved with the text "GOVERNMENT OF PAKISTAN" in English and Hakumat-e-Pakistan in Urdu in the watermark area on the front. The inscription is in green.

Denomination: 5 Rupee
Issuer: Government of Pakistan
Size: 126 x 73 mm
Color: Green
Obverse Design: King George VI facing front
Reverse Design: Reserve Bank of India logo; Language panel; Three antelope
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing front and text
Printer: India Security Press
Catalog Number: Banknote Book B103; Pick 2
Known Prefix: A/42 - A/80; B/65 - B/88 (63 prefixes)

10 Rupee Banknote

The Reserve Bank of India 10 Rupee banknote which has the portrait of King George VI facing front and the signature of C.D. Deshmukh engraved with the text "GOVERNMENT OF PAKISTAN" in English and Hakumat-e-Pakistan in Urdu in the watermark area on the front. The inscription is in violet.

Denomination: 10 Rupee
Issuer: Government of Pakistan
Size: 137 x 77 mm
Color: Violet, brown, olive green, orange and blue
Obverse Design: King George VI facing front
Reverse Design: Language panel; Sailboat
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing front and text
Printer: India Security Press
Catalog Number: Banknote Book B104; Pick 3
Known Prefix: H/48 - H/72; H/83 - H/99; J/0 - J/42; J/50 - J/58 (94 prefixes)

🖋️ Interesting Fact: Not all Indian banknotes were used within India! The above prefixes where used in Pakistan, while, the Prefixes H/73 to H/82 and J/43 to J/50 which were in between were specially overprinted with “BURMA CURRENCY BOARD” and circulated exclusively in Burma. These rare notes stand out as historical evidence of India’s monetary influence beyond its borders during the colonial era.

100 Rupee Banknote

The Reserve Bank of India 10 Rupee banknote which has the portrait of King George VI facing left with Karachi as the office of issue and the signature of C.D. Deshmukh and black serial number engraved with the text "GOVERNMENT OF PAKISTAN" in English and Hakumat-e-Pakistan in Urdu in the watermark area on the front. The inscription is in green.

Denomination: 100 Rupee
Circle of Issue: Karachi
Issuer: Government of Pakistan
Size: 171 x 107 mm
Color: Green, pink and orange
Obverse Design: King George VI facing left
Reverse Design: Language panel; Tiger
Date: None
Signature: C.D. Deshmukh
Material: Paper
Security Thread: None
Watermark: King George VI facing right and text
Printer: India Security Press
Catalog Number: Banknote Book B105; Pick 3A
Known Prefix: B/54 - B/59 and B/60 000001 to 700000 (6.7 prefixes)

Prefix and Serial Number Range

The prefix and serial number range on a banknote are vital for verifying its authenticity and identifying potential counterfeits. By checking these elements, one can easily determine if a note falls within the recognized range issued by the issuing authority. Notes that fall outside the established prefix and serial number range are likely to be counterfeit.

An intriguing contemporary counterfeit has been identified that not only falls outside the specified prefix range but also features a different color inscription compared to the officially issued notes. Additionally, given that Pakistan King George VI notes are valued higher than their British India counterparts, modern forgeries have also been reported. Hence, understanding and verifying the prefix and serial number range remains the most efficient method for detecting counterfeit banknotes.

Pakistan Notes Payment Refused

Pakistan King George VI notes were legal tender in Pakistan until they were demonetized in 1952. The demonetization of British India King George VI notes occurred later on 27 October 1957. As Indian notes without the "GOVERNMENT OF PAKISTAN" inscriptions in English and Urdu continued to be accepted by banks in India until 1957, there were attempts by some to alter these notes in hopes of using them or cashing them in India. These alterations typically involved removing or obscuring the Pakistani inscriptions.

These attempts were readily detected due to the residual lithographic engraving on the text and the established prefix and serial number ranges of the Pakistaninotes. Indian banks and government authorities remained vigilant, taking precautionary measures by stamping such altered banknotes with "PAKISTAN NOTES PAYMENT REFUSED" or similar notations. This stamping signaled the notes' invalidity and effectively prevented their acceptance or use within India.

Transition to the State Bank of Pakistan

The "Pakistan (Monetary System and Reserve Bank) Order, 1947" and the Government of Pakistan inscribed King George VI banknotes played a pivotal role in the early economic history of Pakistan, enabling the country to swiftly develop its monetary system. These events are closely tied to the broader history of colonial-era transitional currencies, particularly those issued under the Military Administration of Burma and the Burma Currency Board, both of which produced overprinted banknotes during periods of administrative and political transition in the region.

The undertaking by the Reserve Bank of India to supply the Pakistani government with inscribed Indian notes to replace those in circulation was also suspended on 30 June 1948. The transition to the State Bank of Pakistan was completed on 1 July 1948, when it officially began its operations, taking over the responsibilities of managing Pakistan's monetary policy, issuing currency, and overseeing the banking system.

Conclusion

The transition from British India to an independent Pakistan was marked by significant changes, particularly in the monetary system, which was crucial for establishing economic stability. The Pakistan King George VI banknotes not only represent a crucial phase in the country’s history but also reflect the broader narrative of the transition from colonial rule to national sovereignty. These notes serve as a tangible connection to Pakistan's formative years, embodying the challenges and triumphs of the early days of independence.

Today, these banknotes are valuable artifacts for collectors and historians, offering insights into the period of transition and the evolution of Pakistan's monetary system. Their historical context and design underscore the importance of currency in national identity and economic management. As such, the Pakistan King George VI banknotes continue to hold a special place in the study of numismatics, representing a unique chapter in both Pakistani and global monetary history.

Frequently Asked Questions

Q: Why do Pakistan King George VI banknotes have "GOVERNMENT OF PAKISTAN" inscribed on them?

A: These inscriptions were added to British India banknotes (1, 2, 5, 10, and 100 Rupee denominations) to designate them for official use within the newly independent Pakistan, establishing a distinct monetary identity immediately after partition. The inscriptions were directly incorporated into the printing plates.

Q: What was the "Pakistan (Monetary System and Reserve Bank) Order, 1947"?

A: This was crucial legislation issued on August 12, 1947, authorizing the Reserve Bank of India to temporarily act as Pakistan's central bank and allowing for the temporary use of modified Indian notes in Pakistan. It laid the foundation for Pakistan's independent monetary system.

Q: How can I identify a counterfeit Pakistan King George VI banknote?

A: The most efficient method is to verify the prefix and serial number range against officially recognized ranges. Contemporary counterfeits have been identified with prefixes outside the specified range and different inscription colors. Vigilance against altered notes (where Pakistani inscriptions were removed) is also crucial.