Business

ISLAMABAD – The official spokesman of the Ministry of Finance has categorically denied news reports and rumours circulating in a section of press and some business circles regarding demonetization of Rs 5000 note.

The statement said the government has not taken such a decision, and there is no justification for the discontinuation of Rs 5000 note.

The spokesman elaborated his position that the current denomination of highest value notes in Pakistan i.e. Rs 5000 was significantly smaller compared to those of major currencies such as $100 note, Euro 200 and Pound Sterling 50. During 2015-16, only 17% of the notes printed were of Rs 5000 denomination.

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

The resolution, moved by Senator Osman Saifullah Khan of the opposition Pakistan People Party, was strongly opposed by members of the government.

The resolution called on the government to demonetise 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”.-Online