Taking lessons from India, Pakistan’s Senate passed a resolution on Monday seeking withdrawal of high denomination Rs 5000 currency notes from circulation to curb the flow of black money and regress money laundering.
Senator Usman Saif Ullah Khan of Pakistan Muslim League tabled the resolution that was endorsed by the majority of lawmakers in the Upper House. He argued that the 5000 Rupee note should be withdrawn from circulation seeing the increase in illegal transactions.
Though the move was strongly opposed by the PML-N (Pakistan Muslim League-Nawaz) government but since the PPP has a majority in the upper house of the parliament, the resolution was passed without any obstacle.
It said the withdrawal of the currency notes should take place within three to five years in order to purge markets of the notes.
Law Minister Zahid Hamid, however, said that the withdrawal of the notes will create crises in the market and the people will resort to foreign currencies in absence of Rs 5,000 notes. He said that currently 3.4 trillion notes are in circulation in country of which 1.02 trillion notes are of Rs 5,000 denominations.
The demonetisation move was a frequently discussed thing in Pakistan after India pulled out it’s Rs 500 and Rs 1000 currency notes from circulation.