A notice announcing the discontinuation of the Rs. 5,000 currency note effective September 30, 2023 is making the rounds on social media.
However, the Ministry of Information and Broadcasting’s (MoIB) Fact Checker account has branded this news as false and without foundation, asserting that it is not only unethical but also does the country a disservice.
Disseminating #FakeNews is not only unethical and illegal but it is also disservice to the nation. It is the responsibility of everyone to reject irresponsible behavior. Reject #FakeNews pic.twitter.com/bfrLn0b2Io
— Fact Checker MoIB (@FactCheckerMoIB) September 7, 2023
Additionally, neither the State Bank of Pakistan (SBP) nor the Ministry of Finance have released any official statements on this subject. This suggests that Pakistan will keep using the Rs. 5,000 note as currency.
It is important to note that Pakistan introduced the Rs. 5,000 currency note on May 27, 2006.
Ammar Khan, a renowned energy economist, proposed demonetizing Pakistan’s highest denomination banknote, the Rs. 5,000 note, earlier this year.
He claimed that when India banned the use of the Rs. 500 and Rs. 1,000 notes, a similar demonetization strategy improved tax collection.
India demonetized its currency in November 2016 by removing the Rs. 500 and 1,000 notes from use.
Although more digital transactions were made both during and after the demonetization period, despite the move’s intention to eradicate black money, numerous reports indicated that it was a failure.