Resolution introduced in Pakistani Senate to Ban Rs. 5,000 notes in order to combat corruption

In a significant development within Pakistan's Senate proceedings, a resolution has emerged, aiming to discontinue the high denomination Rs 5,000 currency notes from circulation. The proponents of this resolution, primarily led by PTI senators, argue that this move is imperative in the ongoing battle against corruption and inflation.

During a recent Senate session, Senator Mohsin Aziz took the lead in tabling the resolution, linking the Rs 5,000 note to various illicit activities such as corruption, terrorism, and smuggling. The resolution contends that the note is frequently utilized in illegal transactions, prompting a call for its withdrawal from the financial landscape.

Senator Aziz highlighted a staggering statistic during his speech – a total of Rs 3.5 trillion worth of Rs 5,000 currency notes have been issued in previous years. He suggested that nearly half of these notes are not in circulation and are instead stored in secure locations, possibly contributing to under-the-radar activities.

In a proactive measure, the senator proposed that the government initiate a limited-time window for citizens to surrender their Rs 5,000 notes voluntarily. This, according to proponents of the resolution, would help mitigate the potential negative consequences associated with the sudden withdrawal of a high denomination currency.

Supporting this resolution, PTI Senator Waleed Iqbal emphasized the need to promote digital payments as an alternative to traditional currency circulation. This stance aligns with the worldwide shift towards a cashless economy, valued for its transparency and traceability in financial transactions.

 Yet, not all Senators share this perspective. Caretaker Information Minister Murtaza Solangi refuted Senator Aziz's claim, asserting that Rs 4.5 trillion worth of Rs 5,000 notes are currently in circulation. He went on to argue that the central bank operates within the framework of existing laws and suggested that past administrations had granted undue autonomy to the State Bank of Pakistan (SBP).

As this resolution unfolds, the debate surrounding the fate of the Rs 5,000 note continues. The potential ban raises questions about the efficacy of such a measure in combating corruption and whether digital payment solutions can seamlessly replace traditional cash transactions. With contrasting perspectives emerging from various quarters, the resolution's fate remains uncertain, making it a topic of keen interest and scrutiny in Pakistan's ongoing efforts to address financial transparency and combat corruption.