Pakistani Senate has passed the resolution to ban Rs. 5000 currency note from circulation, despite the opposition from Govt.
Resolution raised the point that Rs. 5000 currency note should be banned from money circulation, as an attempt to prevent the illegal monetary transactions in the economy. It is not necessary for the government to act upon the resolution.
Senator Osman Saifullah Khan of PPP (Pakistan People’s Party) had proposed the resolution in the Senate. He opined that higher denomination notes are not always supported by international economies due to their possible impact in the form of money laundering and encouragement of corruption.
Senator Zahid Hamid opposed the motion while citing the adverse effects on the economy due to currency ban.
Almost two months before Indian Govt. had suddenly banned the currency notes of rupee 500 and 1000 from circulation as an attempt to clean economy from black money and ensure transparency. Sudden money ban also brings recession in the economy for the time being. At the same times, it also burdens the people who have to use these notes for principal transactions.
Well, it is not compulsory this prohibition of rupee 5000 currency note would always be negative. If such removal of higher denomination currency notes takes 2 to five years then, it can’t bring a sudden change in the economy. But taking the time can jeopardize the actual purpose of cash cleaning and say no to corruption.