Pakistan Senate passes resolution to demonetise Rs. 5,000 notes

ISLAMABAD: Following footsteps of India, Pakistan‘s Senate on Monday passed a resolution seeking withdrawal of high denomination Rs 5,000 currency notes from circulation.

Senator Usman Saifullah of Pakistan Peoples Party (PPP) tabled the resolution which was strongly opposed by the Pakistan Muslim League-Nawaz (PML-N) government but since the PPP has a majority in the upper house of parliament, the resolution was endorsed without any hindrance.

Opposing the resolution, Law Minister, Zahid Hamid, said that the move would have repercussions on the economy and the masses in general, as is happening in neighbouring India. He said that around 3.43 trillion Rs 5,000 banknotes were currently in circulation in Pakistan. He said that about 30 percent of the total currency in circulation comprises of these high denomination notes.

Discussions to demonetise notes of higher denomination had started in Pakistan ever since India took the decision to ban old notes of Rs. 500 and Rs. 1000 on 8th November, 2016.