Good question to seek knowledge if my personal experience can help give you insight of the question then I am writing here under my personal experience of past 38 years traveling through and even staying within 24 countries of the world . I have faced any rejection even remotely by any person (trader or individual ) with whom I tried to pay in local Currency even if the majority amount would be in Coins . Once I passed the Local borders and went into the International land ( departure area oe even inside the airplane/see vessel ) , I could still Pay in the local Currency even if the majority amount tendered , would be in Coins ( my choice to off load all of those ) . If I ran out of the local currency and paid for the service/purchases in foreign currency , It would be welcome However the balance would always be paid back to me in the local currency (coins included ) of the departing port . The only time I faced rejection in the Coins ( I must state in the intl lands) , were when I tried to convert those into the foreign currency of my choice , No trader , No exchange of any repute , would accept the Coins of a foreign country , to be exchanged into local currency . Notes of any denominations YES , But Coins NO . The only time I also faced rejections even with the Notes , if the foreign currency was from a country who has very week economy or was under the intl sanctions . I hope this gives you an inside view of local as well as foreign lands , how they treat their own as well as others coins and Currencies , in a mutual transaction

The previous Government has enacted a law on The Pakistan Coinage Amendment Act 2013 in March 2013, the said act has authorised SBP to exchange coins of paisa 1, 2, 5, 10, 25 and 50 till such time as notified by SBP thereafter these coins will cease to be legal tender,