PTI senator calls for discontinuation of Rs5,000 Note to combat corruption and inflation. In a move aimed at tackling corruption and reining in inflation, Pakistan Tehreek-e-Insaf (PTI) Senator Mohsin Aziz has tabled a resolution in the Upper House of Parliament, calling for the discontinuation of the Rs5,000 currency note.
The senator argues that this highest denomination note is a key contributor to corruption, terrorism, and smuggling in the country.
During the parliamentary debate on Monday, Senator Aziz asserted that the Rs5,000 note, of which Rs3.5 trillion has been issued to date, is at the center of illicit activities.
Notably, he claimed that Rs2 trillion worth of Rs5,000 notes are not in circulation and are instead stored in “safe deposit,” representing the proceeds of money laundering, tax evasion, and smuggling.
Senator Waleed Iqbal, another member of PTI, echoed Senator Aziz’s sentiments, advocating for the promotion of digital payments as a means to reduce reliance on physical currency.
In response to these calls for discontinuation, caretaker Information Minister Murtaza Solangi presented conflicting figures. Solangi stated that Rs5,000 currency notes worth 905 million have been issued, with Rs4.5 trillion currently in circulation.
He also emphasized that the State Bank of Pakistan (SBP) operates within its legal framework and suggested that the central bank was granted “too much” autonomy by the previous government.
This debate is not a new one, as former Federal Board of Revenue (FBR) chief Shabbar Zaidi previously argued that discontinuing Rs5,000 notes and restricting the physical movement of dollars is crucial to curbing the cash economy in Pakistan.
Zaidi contended that the high circulation of currency, particularly the Rs5,000 note, facilitates the cash economy and proposed banning it to discourage the hoarding of wealth.
As PTI senator calls for discontinuation of Rs5,000 Note to combat corruption and inflation, it is essential to note that earlier this year, the Ministry of Information and Broadcasting (MoIB) refuted reports of a purported ban on the use, possession, and circulation of Rs5,000 currency notes.
The ministry clarified that a fake circular circulating on social media with the letterhead of the Finance Division was not authentic.
