A significant move unfolded in the Senate as Senator Mohsin Aziz presented a motion advocating for the abolition of Rs 5,000 notes, attributing them to the inflationary pressures in the country.
In the motion, Senator Mohsin Aziz underscored the urgent need to eliminate the Rs 5,000 note, pointing out its alleged role in fueling inflation. He argued that the undocumented economy in the country accounts for 35 to 40 percent, with a staggering 5.2 trillion rupees of the total 3.5 trillion rupees not in circulation. To address this, Senator Aziz called for the immediate demonetization of the Rs 5,000 note.
Drawing a parallel with India’s economic strategy, Senator Aziz highlighted that India had successfully phased out larger currency notes, contributing to its economic development.
Caretaker Information Minister Murtaza Solangi shared his perspective on the matter, noting that the Rs 5,000 note was introduced on May 27, 2006, and currently, there are 4.5 billion of these notes in circulation in the country.
Solangi remarked that Senator Mohsin Aziz did not touch upon the role of the State Bank in his government in relation to this proposal, leaving room for further discussion and clarification on the potential implications of demonetizing the Rs 5,000 note. The motion signals a significant step in the ongoing debate surrounding economic policies and measures to address inflation and the undocumented economy in the country.
