Pakistani Finance Ministry Dispels Demonetisation Reports

Pakistan’s Finance Ministry on Monday denied media reports that the government was ready to demonetise Rs5,000 (Dh175) notes.

The Pakistani government has not taken any decision to discontinue the circulation of 5,000 rupees note. There is no need to give any justification into the matter, Dawn online quoted a finance ministry spokesman as saying.

“The current denomination of highest value notes in Pakistan, ie Rs5,000, is significantly smaller compared to those of major currencies such as the $100 note, €200 and £50. During 2015-16, only 17 per cent of the notes printed were of 5,000 rupees denomination,” he said in a statement.

The government said discontinuation of Rs5,000 notes “would adversely affect the efficiency of exchange in commercial activities and become a source of major discomfort and anxiety for the people”.

The spokesman said the government was pursuing a National Financial Inclusion Strategy in association with the State Bank of Pakistan, whereby digital transactions and branchless banking was being brought to the doorstep of people that would significantly reduce the dependence on currency.

This is the way to move forward for promoting documentation in the economy rather than by cancelling any existing denomination, he said.

Last week, the Senate had passed a resolution calling on the government to withdraw the 5,000 rupees note from circulation.

The resolution was moved by Senator Osman Saifullah Khan of the opposition Pakistan People’s Party.

source : gulfnews