Modi's Demonitisation bug bites PAKISTAN, Passes Resolution To Demonetise 5,000 Rupee Notes
One and a half months after the most controversial move in India's recent financial history, demonetisation of Rs 500 and Rs 1000 Rupee notes was done, Pakistan has followed suit, the Times of India reported.
Pakistan's senate has passed a resolution to withdraw of Rs 5,000 notes from circulation to halt money laundering.
Pakistan rank 117th out of 175 on a list of the most corrupt countries in the world (2015 Corruption Perceptions Index: Transparency International), and it is obvious that black money is rampant. So is the use of the Rs 5000 note for illegal transactions, Senator Usman Saifullah of Opposition Pakistan People's Party (PPP) said, tabling the resolution.
The party's majority status allowed them to push the resolution through, even though it was contested by the ruling Pakistan Muslim League-Nawaz (PML-N) government.
The move will "reduce illicit money flow, encourage the use of bank accounts and reduce the size of the undocumented economy", a party member said.
While law minister Zahid Hamid opposed the move citing India's month of confusion, long ATM queues and a temporary pause across small industries, senator Saifullah said that printing of Rs 5000 currency note will be halted, and withdrawal should take place in a time span of three to five years.