After much rumours and speculations, the Finance Ministry has finally announced that the government is not pulling off Rs. 5000 notes from circulation. Moreover, it has also been stated that the reports pertaining to the currency pull-out, floating in media, are totally baseless.
While explaining the reason for not demonetizing, the ministry stated that about 17 per cent of the currency comprises of Rs. 5000 notes and barring the circulation would create massive problems for business community.
Just last week, Senator Osman Saifullah Khan of Pakistan People’s Party moved the resolution calling on the government to withdraw Rs. 5000 notes from circulation. However, other members of the government strongly opposed the resolution.
The resolution had asked the government to demonetize the high denomination bank notes “in order to reduce illicit money flow, encourage the use of bank accounts and reduce the size of undocumented economy”.