Senate committee considers banning Rs5,000 note

The discussion around banning the Rs5,000 note resurfaced on Thursday during a Senate standing committee meeting, with committee member Mohsin Aziz calling for its withdrawal to curb tax evasion.

“Steps like discontinuing the high-denomination note are essential to counter tax evasion,” said Aziz, emphasising the need for actionable measures that yield tangible results.

This is not the first time the issue has been raised. Over the years, several officials and politicians have advocated for the note's discontinuation, citing its alleged role in facilitating corruption and other illicit activities.

However, in August, State Bank of Pakistan (SBP) Governor rebutted these claims during a committee session, clarifying that no such proposal was under consideration. “Similar suggestions have been made in the past but were not approved,” the governor stated.

The Rs5,000 note remains the highest denomination in Pakistan, frequently a focal point in debates concerning transparency and accountability in financial transactions.