Senator Mohsin Aziz urged for the abolishment of the Rs. 5,000 currency note as a strategic measure against corruption and inflationary pressures.

In a session at the Upper House of Parliament, the senator presented a resolution advocating the withdrawal of Pakistan’s largest denomination, highlighting its purported involvement in fostering corruption, financing terrorism, and facilitating smuggling.

Expressing concern, the senator emphasized that approximately Rs. 3.5 trillion worth of Rs. 5,000 currency notes circulated within the economy, with an estimated Rs. 2 trillion diverted into ‘secure holdings’ utilized for illicit activities such as money laundering, tax evasion, and unlawful trade.

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Meanwhile, Caretaker Information Minister Murtaza Solangi countered Aziz’s claims, citing that approximately Rs. 4.5 trillion worth of Rs. 5,000 notes currently circulated. He argued that the central bank operated within its stipulated regulations but had been granted excessive authority by the preceding government.

It’s noteworthy that since 2021, experts and economists have consistently advocated the discontinuation of the Rs. 5,000 note as a means to fortify the economy and stabilize the banking sector. The prevalent belief asserts that discontinuing this note could effectively diminish the volume of undisclosed funds, ultimately contributing to an enhanced rupee/dollar exchange rate over time.