ISLAMABAD: The Finance Ministry on Monday clarified that the Rs 5,000 note was not being pulled from circulation and reports pertaining to this were baseless.
A spokesman from the ministry said theÂ current denomination of highest value notes in Pakistan i.e. Rs 5,000 was significantly smaller as compared to those of major currencies such as $100 note, Euro 200 and Pound Sterling 50.
According to the spokesman, 17 per cent of the currency printed in 2015-16 was of Rs 5,000 denominationÂ and stopping its circulation wouldÂ adversely affect the efficiency of exchange in business and become a source of major discomfort and anxiety for the people.
The spokesman stated that the government was pursuing a National Financial Inclusion Strategy in association with the State Bank, whereby digital transactions and branchless banking was being brought to the doorstep of people that would significantly reduce the dependence on currency.
This was the way to move forward for promoting documentation in the economy rather than by canceling any existing denomination, he added.
He hoped that people would not lend their ears to rumors and trust the authentic word of their elected government.
Last week, the Senate passed a resolution calling on the government to withdraw Rs 5,000 note from circulation.
The resolution â€” moved by Senator Osman Saifullah Khan of the opposition Pakistan People Party, was strongly opposed by members of the government.
The resolution called on the government to demonetise the high denomination bank notes “in order to reduce illicit money flow, encourage the use of bank accounts and reduce the size of undocumented economy”.