Mohsin Aziz, a senator for the Pakistan Tehreek-e-Insaf (PTI) party, demanded from the caretaker federal government on Monday that the Rs5,000 currency note be discontinued to stop corruption in the country and suppress inflation that has been spiraling out of control.
As part of the PTI’s opposition to corruption and terrorism, the lawmaker presented a resolution on Monday in the Upper House of Parliament asking for the ban of the highest denomination which he claimed contributed to smuggling, corruption, and terrorism.
The 5,000 rupee note is one of the reasons behind corruption in this country and inflation as well. The senator also stated during the debate that the technology is also used for terrorism and corruption.
It has been reported that not less than 3.5 trillion rupees worth of notes worth Rs5000 have been issued so far. As a result, he added, there is a mass of rupee notes worth Rs2 trillion that are not in circulation and are kept in “safe deposits”.
According to the lawmaker, these are proceeds which have been blocked as they are the proceeds of money laundering, tax evasion, and smuggling.
As a result, he said that the highest denomination of the coin must be surrendered within a limited time frame.
As part of the PTI’s call to ban the Rs5000 currency note, another senator Waleed Iqbal supported his colleague’s call by stating that digital payments should be promoted to reduce the circulation of currency in the country.
In response to the senator’s claims, caretaker Information Minister Murtaza Solangi announced that nine million rupee notes worth Rs5,000 have been issued, and that Rs4.5 trillion are currently in circulation, in response to the senator’s claim.
In his view, the State Bank of Pakistan (SBP) operates under the laws enacted by the government, and the previous government gave the bank “too much autonomy” in order to carry out its functions.
A high denomination note has not been held responsible for the increase in corruption for the first time by any official in the country.
It was in September this year that Shabbar Zaidi, former head of the Federal Board of Revenue (FBR), asserted that it is necessary to cease issuing Rs5,000 notes and restrict movement of dollars in the country to help curb the country’s cash economy.
He added that people have kept wealth in their lockers in dollars and Rs5,000 notes, which he believes should be banned, as currency circulation in Pakistan is very high and the Rs5,000 note provides convenience when it comes to the cash economy.
A fake circular in the letterhead of the Finance Division of the Ministry of Information and Broadcasting (MoIB) was circulated on social media earlier this year, informing concerned citizens that there was a ban on the use, possession, and circulation of Rs5,000 currency notes. As a result, the Ministry of Information and Broadcasting (MoIB) refuted the reports.
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