LAHORE - The Senate on Monday passed a resolution seeking withdrawal of high denomination Rs5,000 currency notes from circulation in order to curb the flow of black money.

Senator Usman Saif Ullah Khan of PML tabled the resolution that was endorsed by the majority of law makers in the Upper House, Dawn News reported.

The resolution said that the withdrawal of Rs5,000 notes will encourage the use of bank accounts and reduce the size of the undocumented economy.

It said the withdrawal of the currency notes should take place within three to five years in order to purge markets of the notes.

Law Minister Zahid Hamid, however, said that the withdrawal of the notes will create crises in the market and the people will resort to foreign currencies in absence of Rs5,000 notes.

He said that currently 3.4 trillion notes are in circulation in country of which 1.02 trillion notes are of Rs5,000 denominations. The move appears to be inspired by India’s recent demonetisation drive, in which notes of 500 and 1,000 Indian rupees were pulled from circulation in a dramatic blitz on tax evasion.