Pakistani Finance Ministry dispels demonetisation reports

Pakistan's Finance Ministry on Monday denied media reports that the government was ready to demonetise Rs 5,000 notes.

The Pakistani government has not taken any decision to discontinue the circulation of Rs 5,000 note. There is no need to give any justification into the matter, Dawn online quoted a Finance Ministry spokesman as saying.

According to him, the current denomination of highest value notes in Pakistan is significantly smaller as compared to those of major currencies such as $100 note, euro 200 and pound sterling 50.

Only 17 per cent of the notes printed during the year 2015-16 were of Rs 5,000 denomination.

The government said discontinuation of Rs 5,000 notes would adversely affect the efficiency of exchange in commercial activities and become a source of major discomfort and anxiety for the people.

The spokesman said the government was pursuing a National Financial Inclusion Strategy in association with the State Bank of Pakistan, whereby digital transactions and branchless banking was being brought to the doorstep of people that would significantly reduce the dependence on currency.

This is the way to move forward for promoting documentation in the economy rather than by cancelling any existing denomination, he said.

--IANS

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