Rs5,000 banknotes to be discontinued amid economic crisis?

Speculations are circulating about the government mulling over recommendations regarding the discontinuation of Rs5,000 banknotes amid the severe economic crisis and skyrocketing inflation.

The speculations were increased after the discontinuation of Rs1,000 and Rs500 currency notes in India and different sections recommended to adopt the same practice of discontinuing bigger banknotes in Pakistan to curb the black money.

Economic experts said that the government should prioritise tax reforms for curbing illegal trade. They added that all governments had promised to bring tax reforms but they failed to implement the laws.

While talking to the ARY News programme Bakhabar Savera, Pakistan Tehreek-e-Insaf (PTI) leader and economic expert Muzammil Aslam termed the recommendations of discontinuing big currency notes ‘impractical’.

“In 2021, I had opposed then government’s move to stop the sale of Rs7,500 and Rs15,000 prize bonds. Instead of witnessing a decrease, bribery was increased after the closure of sale of prize bonds worth Rs40,000 and Rs254,000.”

“Some people are asking to discontinue Rs5,000 banknotes to curb the bribery but they are on a mistake.” He gave examples of currencies and gold coins of different countries and said that their value is much more than the actual value of transactions.”

Muzammil Aslam urged to strengthen the institution of the Federal Board of Revenue (FBR) if the government is serious to eliminate corruption.