Lawmakers Urge Ban on Rs. 5,000 Currency Note to Curb Corruption, Inflation

Senator Mohsin Aziz called for the nullification of the Rs. 5,000 currency note to combat corruption and inflation. Addressing the Upper House of Parliament, the senator tabled a resolution seeking the withdrawal of Pakistan’s biggest currency note, arguing that the legal tender is being used in corruption, terrorism, and smuggling. The senator lamented Rs. 5,000 currency notes worth Rs. 3.5 trillion were in circulation, with roughly Rs. 2 trillion siphoned off in ‘safe deposits’ and used in money laundering, tax evasion, and smuggling. Another lawmaker Senator Waleed Iqbal supported Aziz’s resolution to nullify the highest denomination and recommended digital payments to minimise currency in circulation. Meanwhile, Caretaker Information Minister Murtaza Solangi responded that Rs. 4.5 trillion worth of Rs. 5,000 notes were currently in circulation. He argued that the central bank functions per its regulations but was granted accessive powers by the previous government. It bears mentioning that since 2021, experts and economists have consistently advocated demonetizing the Rs. 5,000 note to improve the economy and stabilize the banking sector. The wider perception is discontinuation will help curtail a large junk of undisclosed money and, in time, improve rupee/dollar parity.