After India, Pakistan now submits resolution for demonetisation to tackle corruption

Karachi: A Pakistani opposition party lawmaker submitted a resolution in the Senate to ban 1,000 and 5,000 rupee notes from circulation in Pakistan to handle corruption and black money.

The resolution was submitted by Pakistan Peoples Party (PPP) Senator Osman Saifullah Khan comes forward when Pakistan’s population is shifting to cash economy due to the government’s ill-conceived taxation policies, said Express News.

“The house urges the government to take steps to withdraw from circulation as legal tender the high denomination Rs 5,000 and Rs 1,000 notes so as to reduce illicit money flows, encourage the use of bank accounts and reduce the size of undocumented economy,” reads the resolution.

This is the only way that will compel people to use banking channels and launch a crackdown on black money circulating in the economy, said Khan, speaking at a meeting of the Senate Standing Committee on Finance on Thursday.

The resolution was moved in the Senate after Indian Prime Minister Modi announced the demonetisation of Rs 1,000 and Rs 500 bank notes in India, to deal major assault on black money, fake currency and corruption.

“At this point, we do not see a reason to withdraw the Rs 5,000 currency note,” Abid Qamar, spokesman for the State Bank of Pakistan, told Express News.

Pakistan’s economy has already started making a gradual shift to cash as protection against the government’s taxation policies, official statistics reveal.