Finance ministry dispels demonetization rumours of Rs 5,000 note

ISLAMABAD: The ministry of finance on Monday categorically denied news reports and rumours circulating regarding demonetization of Rs 5,000 note.

According to a finance ministry’s spokesperson, the government had not taken any decision regarding discontinuation of Rs 5,000 note, so there was no need to give any justification into the matter.

The spokesperson said that the 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.

“During 2015-16, only 17 per cent of the notes printed were of Rs 5,000 denomination.”

“The government believed that discontinuation of Rs 5,000 note would adversely affect the efficiency of exchange in the business and become a source of major discomfort and anxiety for the people,” said the spokesperson.

“As such the very notion of cancellation of such convenience in transactions is preposterous and unequivocally denied.”

The spokesperson said that the government was pursuing a National Financial Inclusion Strategy in association with the State Bank of Pakistan (SBP) 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 cancelling any existing denomination, the spokesperson added.

According to the spokesperson, the ministry of finance hoped that the general public would not lend their ears to baseless rumours and trust the authentic word of the government.