The Pakistan government on Monday rejected a resolution that was passed to scrap the country’s Rs 5,000 note. Last week, the Senate had passed the non-binding resolution in order to curb corruption and black money in the country. The note is the country’s highest denomination of currency. Their resolution came after Indian Prime Minister Narendra Modi announced the demonetisation of Rs 500 and Rs 1,000 notes on November 8.
Pakistan’s finance ministry rejected the resolution on the basis that the move would affect the country’s economy. The ministry stated that in 2015-2016, only 17% of Pakistan’s currency was printed in Rs 5,000 notes. It said it has been encouraging digital transactions to “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,” it said.
The Indian government has faced severe flak for demonetising the country’s two highest denomination currency notes, which made up to 86% of liquidity at the time.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!