Pakistan: Ministry of Finance is not considering demonetisation of Rs 5,000 currency note

Pakistan: Ministry of Finance is not considering demonetisation of Rs 5,000 currency note

The Ministry of Finance said on Monday that the government has neither taken any decision nor is considering demonetisation of Rs 5,000 currency note. The official spokesman for the Finance Ministry said in a statement that there is no justification for discontinuation of Rs 5,000 currency note and reports and rumours circulating in this regard are totally baseless.

Photo Source: News Box

An official said the speculations about demonetisation of Rs 5,000 currency note have been going on for quite some time and both the common man and business community are disturbed over such reports. He said that a need was felt to issue a categorical clarification in this regard.

The position that current denomination of highest value notes in Pakistan, ie Rs 5,000 is significantly smaller as compared with those of major currencies such as $100 note, Euro 200 and Pound Sterling 50. During 2015-16, only 17 per cent of the notes printed were of Rs 5,000 denomination.

The government further states that it is pursuing a national financial inclusion strategy in association with the State Bank whereby digital transactions and branchless banking is being brought to the doorstep of people that would significantly reduce the dependence on currency. This is the way to move forward for promoting documentation in the economy rather than by cancelling any existing denomination.

The government hopes people would not lend their ears to rumors and trust the authentic word of their elected government.

However, Chairman Senate Standing Committee on Finance and Revenue Senator Saleem Mandviwalla has clarified: “Note of Rs5000 has not been withdrawn and is not being withdrawn as neither the Senate Standing Committee on Finance nor the Ministry of Finance has approved such proposal.

Senator Saleem Mandviwalla said that the Business Community and the people at large are panic on the rumors of withdrawing Rs. 5000 note after the Senate of Pakistan has passed the resolution to withdraw Rs. 5000 note in a phase manner.

Chairman Senate Standing Committee on Finance said that Committee will deliberate on the Resolution passed by the senate and would summon the Ministry of Finance, SBP and other relevant government department to discuss the matter.