Senators propose discontinuation of Rs5,000 currency note to fight corruption

Pakistan Tehreek-e-Insaf (PTI) senators are advocating for the discontinuation of the Rs5,000 currency note as a strategic move to combat corruption and inflation.

On Monday, Senator Mohsin Aziz presented a resolution in the Upper House of Parliament urging the prohibition of the highest-denomination currency.

According to Senator Aziz, the Rs5,000 note is frequently associated with corruption, terrorism, and smuggling.

Providing details, Senator Aziz revealed that Rs5,000 currency notes totaling Rs3.5 trillion have been issued to date.

Notably, he emphasised that Rs2 trillion worth of Rs5,000 notes are not currently in circulation but are securely stored in “safe deposit,” which he alleges is linked to money laundering, tax evasion, and smuggling.

Senator Aziz called for a specific timeframe during which individuals should surrender the highest denomination notes.

Supporting this initiative, another PTI Senator, Waleed Iqbal, echoed Senator Aziz’s call to discontinue the Rs5,000 currency note.
He suggested that promoting digital payments would be instrumental in reducing reliance on physical currency.

Responding to these claims, Caretaker Information Minister Murtaza Solangi stated that Rs5,000 currency notes totaling 905 million have been issued thus far, with Rs4.5 trillion currently in circulation.

Solangi attributed the autonomy granted to the State Bank of Pakistan (SBP) by the previous government as a contributing factor to the situation. He asserted that the SBP operates within the confines of its laws.

This isn’t the first time that officials have targeted the highest denomination note for its alleged role in fostering corruption.

In September of this year, former Federal Board of Revenue (FBR) chief Shabbar Zaidi emphasised the importance of discontinuing Rs5,000 notes and imposing restrictions on the physical movement of dollars as crucial steps in curbing the cash economy in the country.