Modi effect? Pakistan Senate passes resolution to withdraw Rs 5,000 noteWeeks after India demonetised its high value currencies, Pakistan’s Senate on Monday passed a resolution seeking withdrawal of high denomination Rs 5,000 currency notes in a phased manner.
Weeks after India demonetised its high value currencies, Pakistan’s Senate on Monday passed a resolution seeking withdrawal of high denomination Rs 5,000 currency notes in a phased manner.
Pakistan’s news website Dawn reported that the House passed this resolution with a majority vote despite opposition by the government.
Senator Usman Saifullah of opposition Pakistan Peoples Party (PPP) tabled the resolution, saying this will help in curbing the flow of black money as Rs 5,000 note was being used in illegal transactions.
The resolution said that the withdrawal of Rs 5,000 notes will encourage the use of bank accounts and reduce the size of the undocumented economy, the Dawn reported, adding that the withdrawal of the currency notes should take place within three to five years in order to purge markets of the notes.
Opposing the resolution, Law Minister Zahid Hamid said that there were Rs 3.431 trillion currency notes in circulation, 30 per cent of which were Rs 5,000 notes.
“There will be chaos in the market if these are taken out,” he said.
He was of the view that demonetisation of Rs 5,000 notes will hamper business activity and adversely affect the government’s policy of financial inclusion.
The move appears to be inspired by India’s recent demonetisation drive, in which notes of 500 and 1,000-rupee notes were pulled out of circulation.