Daily Times

ISLAMABAD: The Senate passed a resolution on Monday, calling on the government to withdraw the high denomination Rs 5,000 notes from circulation, after India banned high-value bank notes last month in a move to limit corruption and tax evasion.

The resolution – passed by Pakistan People Party (PPP) Senator Osman Saifullah Khan – was strongly opposed by members of the government.

The resolution called on the government to demonetise the high-bank notes in order to reduce the flow of illegal money and to keep the economy in check.

“Most of the illegal transactions were carried out using the Rs 5,000 note,” said Senator Saifullah, although he advised the government not to apply New Delhi’s method.

Saifullah suggested that the government should stop printing the high-notes and gradually pull it out of circulation within three to five years.

Federal Minister for Law and Justice Senator Zahid Hamid strongly opposed the resolution, saying “Around 3.431 trillion bank notes of Rs 5,000 were in circulation in Pakistan.” He added that those notes made up 30 per cent of the total currency in circulation in Pakistan.

The senator added that withdrawing such a large number of bank notes from the economy could cause a financial crisis and the people might prefer foreign currency over the Pakistani rupee

The resolution was passed by the House with majority vote.