It seems the voice of the people has reached the members of the government. Ever since the Indian government ended high denomination currency notes and replaced them with new ones, it became common knowledge that such steps could help in revealing hidden assets and hinder tax evasion.
The Senate has passed a resolution on Monday calling the administration to withdraw the high denomination Rs. 5,000 notes from circulation.
The Resolution
The resolution was moved by Senator Osman Saifullah Khan of the opposition Pakistan People Party. The move was strongly opposed by the PMLN government but since the PPP has a majority in the Senate, the resolution was passed.
The resolution called on the government to demonetise the highest denomination currency note “in order to reduce illicit money flow, encourage the use of bank accounts and reduce the size of undocumented economy”.
According to the Osman Saifullah, most illegal transactions are carried out using the Rs. 5,000 note. However, the Senator said that the government should use the same method which was employed by the Indian government, which led to great distress and caused several problems for the general public.
The Senator suggest that the government should stop printing the Rs. 5,000 currency note and then gradually phase out the note from circulation in 3 to 5 years’ time.
The Opposition
Federal Minister for Law and Justice Senator Zahid Hamid led the government backed opposition against the resolution. He said that around 3.43 trillion Rs. 5,000 bank notes were currently in circulation in Pakistan. According to him, about 30 percent of the total currency in circulation comprises of these high denomination notes.
The minister said that such a huge number of currency notes cannot be pulled from circulation without causing a monetary crises. He said that if such steps are taken, people will lose confidence in the Pakistani Rupee and will instead prefer foreign currency due to the steep drop in supply of local currency notes.
Final Words
It is still to be seen whether how the government goes about in handling this resolution and whether it will have any benefits at all since demonetising the currency note over such a long time will have no effect with regards to the aforementioned intentions of Senator Osman. The culprits could avoid returning the notes to the banks by finding workarounds if the time duration is indeed so long.
When one is in opposition, it becomes very easy to demand for all good measures as one has not to bear the consequences.
I hope PML-N government to act upon demonitizing this 5000 Rs note to curb illegal flow of money. PMLN government please do something for Pakistan and not for your own companies
what about prize bonds ? we have 7500 15000 25000 40000 ??? it serves the same purpose
Exactly.
Demonetization stunt already failed in India!
To-date 86% demonetized currency has been returned in India.
After Indian failed Surgical strike drama their Govt diverted the public attention through “Surgical Strike on Currency”
Corrupt keep their money in $, Gold, Cars, Property etc
Govt has already given amnesty to property transactions
So demonetizing will never work
Right
Kindly keep this demonstration drama out of Pakistan.
Demonetization, not demonstration.
Not that it will work considering the intended are sitting in government offices, parliament, senate and PM house.
Bad move. Illogical and not required. Pakistan is mostly a cash economy. Also the Rupee does not fare well in keeping the inflation in check. On the other hand banks steals money in terms of fees etc. People do not trust banks with these transactions due to transaction fees etc. Cash transaction is the way to go.
Every business entity charges fee for services. Why not Banks?
Should not be done, it will only cause incontinence to people.
Why not PPP done this in their own time, this is just a way to pressure the govt. I think their are better solution in the advance world to control black money. Why we asians always try to copy each other steps by giving different name.
This govt already gave amnesty to real state sector which show the seriousness of their intention to decrease corruption/money-laundering flow.
God bless china who come to our rescue otherwise we already isolate our-self from the world already by our policies even before modi declare it.