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Tuesday, December 27, 2016

Pakistan Govt Rejects Senate 's Call to Demonetise 5,000-rupee Note Tuesday Dec 27,2016


Pakistan's government has dismissed a recommendation from the upper house of parliament to scrap the 5,000 rupee ($48) bank note to cut the flow of illicit money and reduce the size of the informal economy.

Pakistan's Senate passed a non-binding resolution this month calling for the government to follow suit to "reduce illicit money flow, encourage the use of bank accounts and reduce the size of the undocumented economy".
But the finance ministry ruled out such a demonetisation, saying it world hurt business.
"Given the continuing use of cash in transactions, the government believes that discontinuation of the 5,000 rupee note would adversely affect the efficiency of exchange in business," the ministry said in a statement

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