ISLAMABAD – The Senate on Monday passed a resolution seeking withdrawal of high denomination Rs5,000 currency notes in order to curb the flow of black money.
Senator Usman Saif Ullah Khan of the Pakistan Peoples Party (PPP) tabled the resolution that was endorsed by the majority of lawmakers in the upper house of Parliament.
The resolution said that the withdrawal of Rs5,000 notes from circulation will encourage the use of bank accounts and reduce the size of the undocumented economy.
It said the withdrawal of the currency notes should take place within three to five years in order to purge markets of these notes.
Law Minister Zahid Hamid, however, said that the withdrawal of the notes will create crises in the market and the people will resort to foreign currencies in the absence of Rs5,000 notes.
He said that currently 3.4 trillion notes were in circulation in country, and of these 1.02 trillion notes were of Rs5,000 denomination.