How banning Rs 5000 currency note will boost Pakistan economy?
Economic expert and former Chairman of the Federal Board of Revenue (FBR), Shabbar Zaidi, has demanded the withdrawal of 5,000 rupee notes, closure of money exchange shops, and discontinuation of gas connections in affluent areas.
Zaidi stated that the 5,000 rupee notes should be withdrawn and announced that these notes should be collected in banks. He suggested declaring that the 5,000 rupee notes can only be deposited in banks to prevent any hoarding. During an interview on Geo News, Shabbar Zaidi highlighted the high currency circulation in Pakistan and how the 5,000 rupee notes make it easier for economic activities.
He emphasized that people have kept their wealth in dollars and 5,000 rupee notes in their homes and lockers. Banning the 5,000 rupee note and physical movement of dollars will be challenging. It is mentioned that any person found with a large amount of cash in Pakistan should be arrested until the source of those funds is verified.
Encouraging the collection of 5,000 rupee notes in banks may not be welcomed by everyone. In India, the sudden discontinuation of the 2,000 rupee note had consequences, so it may require time and consideration to implement such a change in Pakistan.
The Ministry of Finance has stated that no policy decision or action has been taken regarding the restriction of 5,000 rupee currency notes with a face value of 5,000 rupees