After the Senate passed the resolution to withdraw currency notes of Rs. 5000 from circulation, everyone looked up to the government whether it would finally rule out the said money or not.
Finally, the verdict of the Federal Govt. has just arrived and the Rs. 5000 currency note would continue to remain in circulation. After holding an internal meeting, the federal ministry said in a statement, “The government has neither taken such a decision nor is there any justification for the discontinuation of Rs5,000 note.”
“During 2015-16, only 17% of the notes printed were of Rs.5,000 denomination,” it further added. Another argument put forward for the decision was that cancellation of Rs. 5000 note from circulation would produce adverse effects and also impact the economy.
Senate had passed the resolution to ban the Rs. 5000 currency note from circulation as it was a high denomination note and chances of it to be used in money laundering, corruption and for the illegal transaction were higher. Earlier, in November, Modi Govt. in India had also banned Rs. 500 and Rs.1000 note from circulation to launch a crack-down on corruption and a clean cash operation on the economy.
Senator Salim Mandviwala, Chairman of the Standing Committee on Finance told that committee would consult all the stakeholders including Govt. and SBP (State Bank of Pakistan) to discuss the matter while considering all the dimensions.