FOR all the cheer and the buoyancy that the large State Bank of Pakistan advertisement about the first ever Rs5000 currency note seeks to convey and convince the cynical citizen about the economic and financial health of the country, one believes that there is much that grim (at least). Much that is there to contemplate about.

Let’s begin like this: will the common man be able to see the currency note? To him to use it is asking for the moon. Or rather is the Rs5,000 currency note relevant to the common man in the country ? Keep in mind the salaries that the poor get or the daily wages that they live off. Where does this new currency note stand? Does the new note reflect positively on the economic health of the country?

A reason why one focuses on the additional to the currency notes is that even the State Bank of Pakistan has chosen to advertise it and inform its salient features. This is probably the first time that we have seen such advertisements. The SBP also issued advertisements announcing the details of the new note of Rs10.

In other words, it is a case of advertising money, really. And this is being done in the context of rising prices and unemployment, the miseries and unhappiness that come along with it. It is the budget time, and that is another worrying thought, adds a citizen who doesn’t read sunshine in the Rs5,000 currency note.

I have been talking to some people on this new currency note. One colleague, an engineer by profession, said that he agreed with the decision to have launched it. He however chose to remain anonymous, for reasons of security. Another colleague, S.G. Ahmed, standing alongside was emphatic that this country did not need this denomination, and that most people would have no access to it.

Indeed the new note brings with it a degree of fear and insecurity. While it may be convenient to carry it in the wallet or the handbag, the other side of the coin reflects the risk that it would be having. Given the street crime that our urban centres have (including Karachi of course which is on top of the list) it could be that easy to lose all the money you have at that point in time. Withdrawing it from the ATMs is another insecure proposition

I spoke to a senior banking professional whose first remark (off the record) was that “people like me will not be really using this Rs5,000 note, you understand.” But he recalled that when Rs1,000 note was issued in 1987 the currency in circulation was Rs78 billion. Now in 2006 the currency in circulation was Rs800 billion. This fact alone warranted that this new note be issued, he said.

A housewife, Shagufta, was completely unexcited on this new theme and spoke of the umpteen disadvantages of using this note in bazaar. It would be a risk and it would be impractical, as shopkeepers would not be able to give the due ‘change’ easily. It would be an unnecessary hassle for the common man.

But Tariq Zuberi, who read economics at the Karachi University, contended that Rs5,000 note was reflective of the high rate of inflation in the country. He argued that this currency note (we call it the rich man’s note) would facilitate the black money in this society. He looked thoughtful as he said that. “In any money counting error, even a single currency note can make you lose Rs5,000,” he remarked.

I asked another professional, a chartered accountant, who heads the finance function in a large organisation. He approved the Rs5,000 note and highlighted the plus points that it had. For instance, this note has very reliable security features, which will make counterfeiting still more difficult. Then it has engraving on it to enable those special people to identify the currency note. He felt that it was an advantage to have these high denomination currency notes, as they are easier to handle if one is handling cash. However, he added that carrying cash was not as popular as it was in the past, and people are more dependent on plastic money (credit cards).

All these observations have their specific value and weightage. But seriously, what about the relationship between black economy and the Rs5000 currency note. Or that argument the rich man will find it easier to ‘store’ money now. I asked an economics professor about this. Prof (Dr) Qazi Masood Ahmed of the Institute of Business Administration Karachi said that this note was being released keeping in mind the big businessmen in the country. In other words, it is intended not for the common man. And the fear is that if this currency note would lead to a withdrawal (gradual) of smaller denominations it would definitely contribute to rising prices. He believed that this note would not only facilitate black economy, but would also create what he regarded as ‘social problems’ and which would be evident on occasions like weddings. (Would children want this new Rs5,000 note as Eidi? asks a voice within.)

What this economics professor said made me think of what this Karachiite had to say about this new note His reservations and fears were psychological. He observed that for a man to take home salary (or wages) in the shape of one currency or two (Rs5,000 or Rs10,000) could be a humiliating experience -- or perhaps an unfulfilling one to say the least. He underlined that the number of notes did matter too.

In other words, he was perhaps referring to the symbolism of shrinking rupee. Indeed, while on the one hand there is the nightmare of rising prices with which everybody agrees (treasury benches and opposition) on the other is the steady erosion of the rupee’s purchasing power. Smaller denominations are steadily becoming only meaningless numbers, with little or no purchasing power. Neither children nor beggars have any interest in coins, remarked one housewife whose children want at least Rs20 each when they go to school.

Obviously, one is looking into the future of the rupee as one says all this. While I am curious about seeing the Rs5,000 note, I am one of those who is acutely conscious of the risks that go with it in the wallet. Whether one is walking on the streets or in the bazaars of Karachi, in public transport or private cars, there is now that much more at stake. And as I say this, I am aware that there are such citizens who would regard these fears as exaggerated. They are even advocating the need to have currency notes of Rs10,000 now. After all there are prize bonds of Rs40,000 and Rs25,000 too!