Finance ministry dispels demonetization rumor

ISLAMABAD: The finance ministry Monday categorically denied the news reports and rumors circulating in a section of press and some business circles regarding demonetization of Rs 5,000 note.According to finance ministry’s spokesman, the government had not taken any decision regarding discontinuation of Rs 5,000 note, so there was no need to give any justification into the matter.He said the current denomination of highest value notes in Pakistan i.e. Rs 5,000 was significantly smaller as 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.The government believed that discontinuation of Rs 5000 note would adversely affect the efficiency of exchange in the business and become a source of major discomfort and anxiety for the people.’As such the very notion of cancellation of such convenience in transactions is preposterous and unequivocally denied,’ spokesman said.The spokesman stated that the government was pursuing a National Financial Inclusion Strategy in association with the State Bank, whereby digital transactions and branchless banking was being brought to the doorstep of people that would significantly reduce the dependence on currency.This was the way to move forward for promoting documentation in the economy rather than by canceling any existing denomination, he added.He hoped that people would not lend their ears to rumors and trust the authentic word of their elected government.’