Rs5,000 banknote not being demonetised: Finance Ministry
Move comes days after Senate adopted a resolution to withdraw the Rs5,000 note
The move comes days after Senate adopted a resolution to withdraw the Rs5,000 note from circulation. PHOTO: REUTERS
The Ministry of Finance on Monday dispelled rumours that the Rs5,000 banknote was being demonetised, days after the Senate passed a resolution to withdraw the note.
"Given the continuing use of cash in transactions, the government believes that discontinuation of the Rs5,000 note will adversely affect the efficiency of exchange in commercial activities and be a source of major discomfort and anxiety for the people," a statement issued by the ministry said.
The spokesperson added, "The current denomination of highest value notes in Pakistan, ie Rs5,000, is significantly smaller compared to those of major currencies such as the $100 note, Euro 200 and Pound Sterling 50."
Senate adopts resolution to withdraw Rs5,000 banknote
"During 2015-16, only 17% of the notes printed were of Rs.5000 denomination," the statement added.
On December 19, the Senate adopted a resolution to withdraw the Rs5,000 note from circulation. Pakistan People’s Party (PPP) Senator Usman Saifullah tabled the resolution, arguing that the note was being used in illegal transactions and should be withdrawn.
Opposing the resolution, law minister Zahid Hamid said the move would have repercussions on the economy and the masses in general, as is unfolding in neighbouring India.
Senator suggests withdrawing Rs5,000, Rs1,000 banknotes
At this, Saifullah said the banknote shouldn’t be withdrawn at once as was done in India, but halting its printing and withdrawing the notes in a time span of three to five years. The House later adopted the resolution.
The resolution was submitted by the PPP lawmaker on November 10, seeking to reduce illicit money flows and encourage people to use banking services.
The move came after India’s recent demonetisation drive, in which notes of 500 and 1,000 rupee notes were pulled from circulation.
"Given the continuing use of cash in transactions, the government believes that discontinuation of the Rs5,000 note will adversely affect the efficiency of exchange in commercial activities and be a source of major discomfort and anxiety for the people," a statement issued by the ministry said.
The spokesperson added, "The current denomination of highest value notes in Pakistan, ie Rs5,000, is significantly smaller compared to those of major currencies such as the $100 note, Euro 200 and Pound Sterling 50."
Senate adopts resolution to withdraw Rs5,000 banknote
"During 2015-16, only 17% of the notes printed were of Rs.5000 denomination," the statement added.
On December 19, the Senate adopted a resolution to withdraw the Rs5,000 note from circulation. Pakistan People’s Party (PPP) Senator Usman Saifullah tabled the resolution, arguing that the note was being used in illegal transactions and should be withdrawn.
Opposing the resolution, law minister Zahid Hamid said the move would have repercussions on the economy and the masses in general, as is unfolding in neighbouring India.
Senator suggests withdrawing Rs5,000, Rs1,000 banknotes
At this, Saifullah said the banknote shouldn’t be withdrawn at once as was done in India, but halting its printing and withdrawing the notes in a time span of three to five years. The House later adopted the resolution.
The resolution was submitted by the PPP lawmaker on November 10, seeking to reduce illicit money flows and encourage people to use banking services.
The move came after India’s recent demonetisation drive, in which notes of 500 and 1,000 rupee notes were pulled from circulation.