Pakistan has dismissed the Senate’s recommendation for the demonetisation of Rs 5000 note to curb corruption in the country.
“Given the continuing use of cash in transactions, the government believes that discontinuation of the 5,000 rupee note would adversely affect the efficiency of exchange in business”, the Ministry said in the statement on Tuesday, as quoted by Reuters.
Pakistan rejects resolution to demonetisation of Rs 5000 note as the move will adversely impact its economy
The Senate’s recommendation came after the Indian government demonetised its high denomination notes of Rs 500 and Rs 1000, after which the Pakistani Senate deemed it necessary for its own economy as well.
Also Read: Currency ban in Pakistan: Pakistan Senate follows its neighbour’s footsteps, bans Rs 5000 note
The resolution for demonetisation in Pakistan was led by Osman Saifullah Khan of the opposition Pakistan People Party. The resolution bill stated – To “reduce illicit money flow, encourage the use of bank accounts and reduce the size of the undocumented economy” Rs 5000 note should be demonetised.
The Ministry had said that the scrapping of Rs 5000 bill will adversely affect the economy taking in view the amount of cash in circulation, particularly the high denomination currency. It also said that it will be a major cause of discomfort for its people.
“As such the very notion of cancellation of such convenience in transactions is preposterous and unequivocally denied…This is the way to move forward for promoting documentation in the economy rather than by cancelling any existing denomination”, the ministry said.