ISLAMABAD: The ministry of finance has made it clear that there are no government plans to withdraw the highest value currency note of the country and that reports about demonetisation of the Rs5,000 currency note are false.

“Given the continuing use of cash in transactions, government believes that discontinuation of Rs5,000 note would adversely affect the efficiency of exchange in the business,” a statement issued by the ministry said on Monday.

It said the government had neither taken such a decision nor was there any justification for the discontinuation of the Rs5,000 note.

The statement said that the printing of the Rs5,000 note was significantly small as compared to those of major currencies, such as US $100, 200 euros and 50 pound sterling banknotes. During 2015-16, only 17 per cent of the notes printed were that of Rs5,000 denomination.

The ministry has noted that the rumour circulating in some sections of society about the demonetisation of Rs5,000 currency was a source of discomfort and anxiety for people, especially members of the business community.

The finance ministry’s statement said that the upcoming ‘National Financial Inclusion Strategy’ being pursued with the State Bank of Pakistan would significantly reduce the dependence on currency.

The strategy encompasses digital transactions and branchless banking through mobile phones and other internet modes.

“This is the way to move forward for promoting documentation in the economy rather than by cancelling any existing denomination,” the statement added.

Meanwhile, Chairman of Senate Standing Committee on Finance Saleem Mandviwalla said in a statement that there was no reality in reports about demonetisation of Rs5,000 currency note. He said the government was neither going to ban the highest value currency note of the country nor had any future plan to do so.

He said withdrawing Rs5,000 note would have a negative impact on the economy. Such a move would have its own pros and cons, he said, adding that any such proposal would be approved with the consultation of all stakeholders.

He, however, made it clear that there was no consideration on the demonetisation of Rs5,000 note at the moment.

He said people, especially members of the business community, should not get into a panic on false rumours.

Published in Dawn December 27th, 2016