THIS is apropos the article ‘Time to demonitise?’ (Feb 17). The demonitisation of high-denomination currency notes, i.e. 5,000 rupee note, has become a highly desirable action in the backdrop of the prevalent menaces of corruption, tax evasion, drug trafficking and other illegal financial transactions.

It would definitely help state institutions in their overall drive to curb the above-cited malpractices. Demonitisation may also support the process of documentation of economy and transformation of informal economy into formal economy.

I also agree with the said write-up that demonitisation, if properly implemented, will reduce the use of black money in the upcoming elections and its consequential influence on public policy. This is a great economic step, and it also carries seriously positive implications.

However, the beneficiaries of black money will not allow the process of demonitisation to go smoothly and effectively. I fully endorse the assertion that the demonitisation process must be initiated after appropriate due diligence, and with full preparedness and proper planning.

The next-door experience in India may, however, not be too much relevant in case of Pakistan, because we have our own specific environment and unique economic, social and political background.

Fortunately, Pakistan has very renowned economists, financial experts and monetary wizards. The government may utilise the expertise of these professionals for proper planning, selection of suitable time for initiation and implementation of the demonitisation of high-denomination currency notes.

It also requires complete commitment at the political level and a national consensus. If it is implemented professionally and effectively, it will definitely lead to economic stability, improve the image of Pakistan as a responsible state, and counter the nefarious and ill-intended propaganda by the foes of Pakistan.

Ahmad H. Ghumman
Islamabad

Published in Dawn, March 1st, 2021