ISLAMABAD: The official spokesman of the Ministry of Finance has categorically denied the news reports and rumors circulating in the press and some business circles regarding demonetization of Rs.5000 note.

In a statement today, the spokesman said, “The Government has neither taken such a decision nor was there any justification for the discontinuation of Rs.5000 note.”       

The spokesman elaborated the position that, “The current denomination of highest value notes in Pakistan i.e. Rs.5000 was significantly smaller compared to those of major currencies such as $100 note, Euro 200 and Pound Sterling 50. During 2015-16, only 17% of the notes printed were of Rs.5000 denomination.”       

“Given the continuing use of cash in transactions, Government believes that discontinuation of Rs.5000 note would adversely affect the efficiency of exchange in the business and be a source of major discomfort and anxiety for the people,” he said.

“As such the very notion of cancellation of such convenience in transactions is preposterous and unequivocally denied,” he added.        

He stated that, “The Government further states that it is pursuing a National Financial Inclusion Strategy in association with the State Bank of Pakistan (SBP) whereby digital transactions and branchless banking is being brought to the doorstep of people that would significantly reduce the dependence on currency.”

 “This is the way to move forward for promoting documentation in the economy rather than by canceling any existing denomination,” he said.        

“The Government hopes people would not lend their ears to rumors and trust the authentic word of their elected Government,” the spokesman said.