Pakistan Senate Debates Scrapping Rs. 5,000 Note to Fight Corruption

rs. 5,000 currency notes

Senator Mohsin Aziz urged the government to cancel the Rs. 5,000 currency note to tackle corruption and inflation. He presented a resolution in the Upper House of Parliament, stating that this large denomination note is being misused in corrupt activities like terrorism and smuggling.

Senator Aziz expressed concern that there are Rs. 3.5 trillion worth of Rs. 5,000 notes in circulation, with around Rs. 2 trillion stashed away in “safe deposits” and used for illegal activities such as money laundering and tax evasion.

Supporting Aziz’s resolution, Senator Waleed Iqbal suggested promoting digital payments to reduce the reliance on physical currency.

On the other hand, Caretaker Information Minister Murtaza Solangi stated that there are currently Rs. 4.5 trillion worth of Rs. 5,000 notes in circulation. He argued that the central bank operates within its regulations but was given excessive powers by the previous government.

Since 2021, experts have been advocating for demonetizing the Rs. 5,000 note to boost the economy and stabilize the banking sector. The general belief is that discontinuing this note will help reduce the amount of undisclosed money and eventually improve the exchange rate between the rupee and the dollar.