‘Ban Rs 5,000 note to stop corruption and inflation’

Senator Mohsin Aziz claims that Rs 5,000 notes worth Rs 3.5 trillion have been issued so far

A currency dealer is counting Rs 5,000 notes.  - AFP/File
A currency dealer is counting Rs 5,000 notes. – AFP/File
  • Senator Aziz moved a motion in the Upper House to ban Rs 5,000 notes.
  • “Rs 5,000 note is the cause of corruption and inflation,” claims the senator.
  • Senator Waleed Iqbal called for promoting digital payments.

ISLAMABAD: Pakistan Tehreek-e-Insaf (PTI) Senator Mohsin Aziz has called for demonetisation of Rs 5,000 currency notes to “eliminate corruption and curb inflation”.

Senator Aziz introduced the motion in the upper house of parliament on Monday, demanding a ban on the supreme sect, which he said contributes to corruption, terrorism and smuggling.

“The Rs 5,000 note is the cause of corruption and inflation in the country. It is also used in terror and corruption activities,” the senator said during the debate.

He said that till now Rs 5000 notes worth Rs 3.5 trillion have been issued. Of these, Rs 2 trillion worth of Rs 5,000 notes were not in circulation and are stored in “safe deposits”, he said.

“These are the proceeds of money laundering, tax evasion and smuggling, which have been blocked,” the MLA claimed.

He said a limited time period should be given to surrender the highest denomination notes.

Another PTI senator, Waleed Iqbal, also joined his fellow MLA’s call for banning the Rs 5,000 note and said digital payments should be promoted to reduce currency circulation.

Responding to the senator’s claims, Acting Information Minister Murtaza Solangi said Rs 905 million worth of notes have been issued so far and added that Rs 4.5 trillion are currently in circulation.

Solangi said the State Bank of Pakistan (SBP) operates under its own laws and the previous government had given “too much” autonomy to the central bank.

This is not the first time that an official has blamed the highest denomination notes for the increase in corruption.

In September this year, former Federal Board of Revenue (FBR) chief Shabbar Zaidi had stressed that demonetisation of Rs 5,000 notes and curbing the physical movement of dollars was important to curb the cash economy in the country.

Zaidi said the currency in circulation in Pakistan is very high and the Rs 5,000 note facilitates a cash economy, adding that people kept money in dollars and Rs 5,000 notes in their lockers, which should be banned. .

Earlier this year, after a fake circular with Finance Division letterhead went viral, the Ministry of Information and Broadcasting (MoIB) had refuted reports of an alleged ban on the use, possession and circulation of Rs 5,000 notes. social media.

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