PPP Senator Issues a Resolution to Demonetize Rs. 1,000 & 5,000 Currency Notes

In an effort to stop illegal activities arising from money, Osman Saifullah Khan, the senator of PPP gave a resolution for demonetization of notes of rupees 1000 and 5000. He submitted a resolution in upper parliament house.
“The house urges the government to take steps to withdraw from circulation as legal tender the high denomination Rs5,000 and Rs1,000 notes so as to reduce illicit money flows, encourage the use of bank accounts and reduce the size of undocumented economy,” as per the resolution.
The Benefit?
The sincere reason for the call is to encourage people to get more into usage of banking services. Not just this, the proposal has been submitted to cater with illegal money activities, to stop its illegal use and monitor the activities as well.
This proposal holds the power to get the culprits involved in circulating black money in the economic system, commented Saif Khan.
Resolution Opposed by State Bank of Pakistan?
On the reply to the proposal, State Bank of Pakistan opposed it completely. The first reason to be was Rs. 5000 note was brought up in the government of former General Pervaiz Musharraf. Next, the SBP believes that it is much easier to move and carry the note instead of utilizing banking services every now and then for a mere currency requirement. According to head bank of Pakistan, there is no need to demonetize the currency in the country, as said by Abid Qamar, spokesman for the bank.
He commented, “At this point, we do not see a reason to withdraw the Rs 5,000 currency note.”
Economy of Pakistan
If we talk generally of the world’s economy, it can be perceived by World Bank Report that as much as 100 million adults are such that they don’t use financial services, either not being aware or having no access to it, regulated and official both.
On the contrary, more and more people have opted to use cash instead of financial services with the taxation burden on their backs by government policies.
This comes at a greater understanding seeing the report of Monetary Policy Committee (MPC) for the fiscal year (2015-16) according to which deposits in banking industry were lower than the last year. On the other hand, there was a rapid increase in the circulation of the currency.
Federal Board of Revenue Chairman Nisar Mohammad Khan gave his views on Thursday, “People cannot keep money under their pillows,”


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