Responds to Social Media Notification: The Federal Ministry of Finance has addressed a circulating social media notification regarding discontinuing the Rs5,000 banknote effective 30 September 2023.
Circulating social media notification-Fact-checking:
The Ministry of Information and Broadcasting’s Fact Checker account has labelled the news as fake and baseless, condemning it as unethical and harmful to the nation. No official statements have been issued by the Ministry of Finance or the State Bank of Pakistan (SBP) on this matter.
Continued Circulation of Rs. 5,000 Currency Note:
As a result of the absence of official announcements, it is confirmed that the Rs. 5,000 currency note will continue to circulate in Pakistan. This high-denomination note was introduced on 27 May 2006.
Proposal for Demonetization and India’s Experience:
Earlier this year, prominent energy economist Ammar Khan suggested demonetizing the Rs. 5,000 note, Pakistan’s highest-denomination banknote. He drew parallels with India’s demonetization strategy in 2016 when India removed Rs. 500 and Rs. 1,000 notes from circulation.
India’s Demonetization Experience:
India’s demonetization aimed to eradicate black money. However, subsequent reports revealed that it did not achieve its intended objectives despite increased digital transactions during and after the demonetization period.
In response to a social media notification suggesting the discontinuation of the Rs5,000 banknote, the Federal Ministry of Finance has clarified that this news is fake and unsubstantiated. The Ministry of Information and Broadcasting’s Fact Checker account also disapproves of this false information. There have been no official statements from the Ministry of Finance or the State Bank of Pakistan (SBP) regarding the discontinuation of the Rs. 5,000 currency note. Consequently, the Rs. 5,000 currency note will continue circulating in Pakistan.
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