ISLAMABAD: After India, now the Pakistan Senate on Monday passed a resolution seeking withdrawal of high denomination Rs. 5000 currency notes from circulation in order to curb the flow of black money.
Senator Usman Saif Ullah Khan of Pakistan Muslim League (PML) tabled the resolution that was endorsed by the majority of lawmakers in the Upper House, reports the Dawn.
The resolution said that the withdrawal of Rs 5,000 notes will encourage the use of bank accounts and reduce the size of the undocumented economy adding that the withdrawal of the currency notes should take place within three to five years in order to purge markets of the 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 absence of the high denomination notes.
He said that currently, 3.4 trillion notes are in circulation in a country of which 1.02 trillion notes are of Rs. 5,000 denominations.