Pakistan: Resolution Proposed to Ban Rs5,000 Note in Fight Against Corruption and Inflation

Pakistan: Resolution Proposed to Ban Rs5,000 Note in Fight Against Corruption and Inflation

Nadia Nawaz | November 21, 2023 | 10:47 AM IST | Pakistan News | Follow on Google News

Pakistan: Resolution Proposed to Ban Rs5,000 Note in Fight Against Corruption and Inflation

Pakistan: Resolution Proposed to Ban Rs5,000 Note in Fight Against Corruption and Inflation

Pakistan Tehreek-e-Insaf (PTI) Senator Mohsin Aziz has taken a bold step in advocating for the discontinuation of the Rs5,000 currency note, asserting that it is a significant contributor to corruption, terrorism, and smuggling. Senator Aziz tabled a resolution in the Upper House of Parliament, highlighting the adverse impacts of the highest denomination note on the country’s economic landscape.

In his impassioned plea, Senator Aziz argued that the Rs5,000 note is a major cause of corruption and inflation, stating that it is also frequently used in illicit activities related to terror and corruption. The senator revealed shocking statistics, claiming that Rs5000 currency notes amounting to Rs3.5 trillion have been issued to date, with Rs2 trillion worth of notes not in circulation, stored in “safe deposit.” According to him, these funds are suspected to be the result of money laundering, tax evasion, and smuggling.

Promoting Digital Payments as an Alternative to Currency Circulation

Joining Senator Aziz in his call for the ban, PTI Senator Waleed Iqbal emphasized the need to promote digital payments as a strategy to reduce currency circulation. This highlights a shift towards modern financial practices and the potential benefits of embracing digital transactions.

Responding to the claims, caretaker Information Minister Murtaza Solangi provided insights into the current circulation of Rs5,000 notes, revealing that Rs4.5 trillion are currently in circulation. He addressed concerns about the autonomy of the State Bank of Pakistan, stating that the previous government had granted “too much” independence to the central bank.

In the past, former Federal Board of Revenue (FBR) chief Shabbar Zaidi had also stressed the importance of discontinuing Rs5,000 notes to curb the cash economy. He believed that restricting the physical movement of dollars and discontinuing the highest denomination notes were crucial steps in achieving this goal.

This resolution has sparked a significant debate about the role of currency denominations in shaping the economic landscape, with voices both in support and opposition emerging across the political spectrum.

Nadia Nawaz

Nadia Nawaz – a new journo in digital journalism covers stories, reports/articles from Pakistan. Nadia writes on various topics, include Politics, Economy,Sports and finance. she further holds a high head in field of graphic designing. Nadia can be reached on nawaznadia20@gmail.com