Senator suggests banning Rs5,000 banknote to address corruption and inflation in Pakistan

WEB DESK: Pakistan Tehreek-e-Insaf (PTI) Senator Mohsin Aziz has urged the discontinuation of the Rs5,000 currency note as a measure to curb corruption and address inflation.

Presenting the resolution in the Upper House of Parliament on Monday, Senator Aziz proposed a ban on the highest denomination, attributing it to fostering corruption, supporting terrorism, and facilitating smuggling.

During the debate, the senator said that the Rs5,000 note is a catalyst for corruption and inflation in the country, serving as a tool in illicit activities related to terrorism and corruption.

He pointed out that Rs5,000 currency notes amounting to Rs3.5 trillion have been issued to date. Notably, Rs2 trillion worth of Rs5,000 notes are not currently in circulation, stored in what he referred to as “safe deposit.”

Senator Aziz asserted that these notes, amounting to Rs2 trillion, represent the proceeds of money laundering, tax evasion, and smuggling, and have now been blocked.

According to Geo News, he advocated for a limited time period during which individuals should surrender the highest denomination.

In support of the call to ban the Rs5,000 currency note, another PTI Senator, Waleed Iqbal, advocated for the promotion of digital payments to reduce reliance on physical currency.

In response to the senators’ claims, caretaker Information Minister Murtaza Solangi stated that Rs5,000 currency notes worth 905 million have been issued so far, with Rs4.5 trillion currently in circulation.

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